Dangote Refinery May Cut Petrol Sales to Importing Marketers Over Quality Concerns

• Dangote Refinery is considering restricting petrol sales to major marketers that continue to import PMS.

• The refinery says alleged blending of imported petrol with its products could undermine quality control and the integrity of its brand.

• The move comes as petrol imports rise despite expanding domestic refining capacity and Nigeria’s refined-product exports surge.

August 31, () — Dangote Petroleum Refinery is considering restricting petrol sales to major marketers that continue to import Premium Motor Spirit (PMS), amid concerns over product quality, market transparency and the integrity of products supplied under its brand.

The proposed measure could take effect as early as this week, subject to further consultations and possible intervention, according to sources familiar with the refinery’s position.

The development comes as Nigeria’s downstream petroleum market undergoes a major shift from decades of import dependence towards greater domestic refining capacity.

Sources said the refinery’s immediate concern is the alleged blending of imported petrol with PMS purchased from Dangote before the products are distributed to the market.

The refinery is concerned that such practices could make it difficult to distinguish between products supplied directly by Dangote and products subsequently blended or handled by third parties.

A source familiar with the refinery’s position said the company was concerned that products of uncertain quality could ultimately be associated with its brand.

However, the allegation of substandard imported petrol being blended with
Dangote products has not been independently established.

Rising imports raise fresh concerns

A fuel cargo. Photo credit: ShutterstockThe proposed restriction comes against the backdrop of a sharp increase in petrol imports despite the expansion of domestic refining.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority showed that average daily PMS imports rose from 5.9 million litres in May to 18.1 million litres in June and further to 19.7 million litres in July.

Imported petrol consequently accounted for 43.3 percent of total PMS receipts in July, up from 35.8 percent in June and 12.4 percent in May.

Domestic PMS supply, meanwhile, declined from 41.5 million litres per day in May to 25.8 million litres in July.

The figures have intensified debate over whether petrol imports should continue at current levels as local refining capacity expands.

The Centre for the Promotion of Private Enterprise has called on the regulator to approve imports primarily where there are independently verified supply gaps, arguing that unnecessary imports could weaken refinery utilisation and discourage investment in domestic refining.

Refining revolution changes Nigeria’s trade

Dangote Refinery, with a capacity of 700,000 barrels per day, has become a major supplier to both the Nigerian and international markets.

Its impact is increasingly visible in Nigeria’s petroleum-product trade.

The US Energy Information Administration said seaborne petroleum-product shipments from Nigeria averaged 561,000 barrels per day in the second quarter of 2026, compared with an annual average of 79,000 barrels per day in 2023.

Of the 561,000 barrels per day shipped during the quarter, about 350,000 barrels per day were exported, compared with 46,000 barrels per day in 2023. The EIA attributed the transformation largely to the opening and expansion of Dangote Refinery.

The agency said increased domestic production had reduced imports, increased exports and made Nigeria more self-sufficient in refined petroleum products.

Dangote has also strengthened its position in international markets, with its jet fuel becoming a major source of supply to Europe.

In July, the refinery supplied more than 400,000 tonnes of jet fuel to Europe, accounting for roughly one-fifth of the continent’s imports and making Nigeria its largest external supplier for a second consecutive month, according to Kpler data cited by the refinery.

The proposed restriction therefore comes at a critical point for Nigeria’s downstream sector, where the central debate is shifting from whether the country can refine enough fuel to how domestic production, imports, competition and quality control should coexist in the emerging market.