South Africa, along with seven other nations, has expressed interest in lifting fuel from Nigeria’s Dangote Refinery, Africa’s largest. Explore how the refinery’s output is attracting regional demand and transforming energy supply in Africa.
The Dangote Refinery and Petrochemical is poised to commence fuel exports to South Africa, Angola, and Namibia.
A very reliable source, who shared this information exclusively with one of our reporters on Friday, revealed that the management of the 650,000-barrel-per-day capacity refinery is in advanced negotiations with several countries to begin fuel lifting.
Our correspondents reported that four additional African countries—Niger Republic, Chad, Burkina Faso, and the Central African Republic—had also begun negotiations with the refinery.
I was reliably informed that several more countries are expected to express interest in sourcing fuel from the refinery in the coming months.
Recently, it was reported that Ghana has shown interest in purchasing petrol from the $20 billion refinery located in Lekki.
Mustapha Abdul-Hamid, the Chairman of Ghana’s National Petroleum Authority, stated that the agreement with Dangote refinery is expected to put an end to his country’s $400 million monthly fuel imports from Europe.
“The source stated, ‘I can confirm that discussions are indeed at an advanced stage with Ghana, Angola, Namibia, and South Africa. Meanwhile, preliminary talks are beginning with Niger, Chad, Burkina Faso, and the Central African Republic.'”
When questioned about why marketers are refusing to purchase from Dangote despite the refinery’s capabilities, the source indicated that the dealers have a hidden agenda.
“Nevertheless, between now and January 2025, their plan is expected to be revealed. According to the source, Dangote refinery stands as this country’s hope for a sustainable petrol supply and possesses the capability to meet national demand.”
In the meantime, local marketers have decided to bring in fuel from abroad.
Last week, the Independent Petroleum Marketers Association of Nigeria and the Petroleum Products Retail Outlets Owners Association of Nigeria stressed their commitment to fuel importation. They accused the Dangote refinery of charging Nigerians excessively high prices for its fuel products.
The marketers are waiting for approval from the Central Bank of Nigeria and the Nigerian Midstream and Downstream Petroleum Regulatory Authority to import more affordable petrol.
The marketers contended that bringing in more affordable petrol would provide relief for consumers who are still adapting to the price increases after the fuel subsidy was removed.
To move forward, the marketers sought access to foreign exchange from the CBN and obtained permits from NMDPRA to ensure compliance with fuel quality and regulatory standards.
READ ALSO: FG Grants New Permission to Petrol Marketers Amid Dangote Refinery Operations
However, the NMDPRA has denied claims that IPMAN and PETROAN were permitted to acquire petrol import licenses as associations.
An NMDPRA official, speaking to our correspondent anonymously because of the issue’s sensitivity, stated that the agency could not approve oil marketers’ request for a group import license; approvals must be based on individual applications instead.
The source stated that submitting applications individually was a requirement by law and could not be disregarded.
The reality is that they cannot apply for a petrol import license as an organization or association. Each individual marketer must submit their own application to be eligible for the license. We will not issue permits collectively, so applications from associations are not accepted.
“This means that if individual marketers don’t apply, we can’t approve it.”
In response, Dr. Joseph Obele, the National Public Relations Officer of PETROAN, stated that around a month ago, the association submitted an application for the import license via its recently established trading division.
He characterized Dangote as an “intense competitor” willing to go to great lengths to dominate the market.
Please be aware that Dangote is trying to prevent any new entrants into the market by closing off all opportunities. He is committed to keeping out competitors. However, we want to reassure Nigerians that once we receive approval from the regulatory agency for importation, the price of PMS, which currently burdens many citizens, will significantly decrease.
The product we plan to import is among the best available, significantly surpassing Dangote’s offering. However, he claims that no incoming product is superior to his own in Nigeria.
“We urge Nigerians to back the initiative for dismantling monopolies and freeing the market. Without this change, we’ll remain stuck in our current predicament of exploitation. The only way out is by breaking down all forms of monopoly, and we call on Nigerians for their support,” said Obele.
