Daud Olatunji
A new wave of petrol importation valued at over N436bn within just nine days has intensified the standoff between independent oil marketers and the Dangote Petroleum Refinery, deepening tensions in Nigeria’s downstream oil sector.
Findings from a Tanker Position Report obtained on Monday revealed that 370,000 metric tonnes of Premium Motor Spirit (PMS), equivalent to about 496.17 million litres, were discharged at various Nigerian ports between May 11 and 20, 2025.
At an average landing cost of N879.48 per litre, the import bill for this short window translates to over N436.37bn — a massive financial outlay amid the nation’s lingering foreign exchange crisis.
PLATFORM TIMES reports that this latest import spree comes on the heels of a sobering revelation by Alhaji Aliko Dangote, President of the Dangote Group, who recently lamented that his $20bn refinery was still “fighting for survival.”
At a public event two weeks ago, Dangote cited entrenched interests and sustained importation as existential threats to the refinery, despite its scaled-up production and improved output.
Industry analysts suggest that Dangote’s fears may now be materialising, as independent marketers appear to be deliberately snubbing the local refinery in favour of foreign-sourced products.
Multiple sources hinted that marketers prefer imports due to more favourable pricing models, flexible terms, and fewer logistical bottlenecks compared to the refinery’s offerings.
At the heart of the impasse is a contentious pricing structure adopted by the Dangote Refinery, which marketers claim is non-competitive compared to international benchmarks.
In addition, operators cited issues around gantry loading delays, limited supply windows, and currency conversion challenges as reasons for the increasing preference for foreign fuel sources.
A further breakdown of import activities shows that Pinnacle Oil led the surge, receiving 152,000MT — about 208.83 million litres, or nearly 49.6% of the nationwide PMS deliveries for the period — at its depot near the Lekki-based Dangote facility.
Other major players included AA Rano (40.23 million litres), Sunbeth (26.82 million litres), OBAT, Rainoil, Matrix, Prudent Energy, and Mainland (Calabar), each delivering over 20 million litres during the nine-day period.
Sources also pointed to a growing trend in fuel shipments via Togo’s offshore Lome market, where traders engage in bulk-to-breakbulk transfer to reduce tax exposure and continue dollar transactions.
PLATFORM TIMES further gathered that this tactic has gained traction since the Nigerian government began pushing for fuel transactions in naira.
Data from S&P Global Commodities at Sea shows that gasoline imports into Nigeria and Togo climbed from 200,000 barrels per day in January to over 300,000 b/d in March, with April volumes stabilising around 250,000 b/d — close to Nigeria’s daily demand of 300,000 b/d.
This regional supply route, analysts say, is further buoyed by softened freight rates, with Platts pegging the Clean Long-Range UKC-West Africa rate at $22.68/mt as of May 12 — down from $28.25/mt a year earlier.
Despite the record inflows, depot prices for PMS have reportedly spiked, exacerbating distribution costs and retail pricing pressures across the downstream chain.
Though precise figures remain volatile, marketers cited ongoing foreign exchange fluctuations and logistics hurdles as key drivers behind recent price adjustments.
Meanwhile, three additional vessels carrying 56,000MT of PMS are expected to berth at the Apapa and Calabar ports today, May 20, further underscoring the tempo of imports in recent weeks.
With over N2.42tn already spent on petrol imports in just 70 days between March 1 and May 9, and an earlier N4.51tn expended from October 2024 to February 2025, the industry’s heavy reliance on foreign-sourced fuel raises fresh concerns about the long-term viability of the Dangote Refinery and the broader goals of local refining self-sufficiency.
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