Dangote Petroleum Refinery has raised concerns over an international trading company allegedly renting a depot to blend and distribute substandard petroleum products in Nigeria, a move it claims could undermine the domestic market and public safety.
The company asserts that its petrol is competitively priced and of higher quality than products imported by the Nigerian National Petroleum Corporation Limited (NNPCL) and other players. Dangote Refinery has called on the government to protect local industries to foster job creation and economic growth.
In a statement, Anthony Chiejina, Group Chief Branding and Communications Officer of Dangote Group, warned about the alleged activities of the trading firm. “An international trading company has recently hired a depot facility next to Dangote Refinery to blend sub-standard products that will be dumped into the market to compete with Dangote Refinery’s higher quality production,” Chiejina stated, noting that such actions are detrimental to the growth of domestic refining in Nigeria.
Chiejina emphasized the importance of government intervention, citing examples from the U.S. and Europe, where high tariffs on electric vehicles and microchips have been imposed to protect local industries.
Urges Public to Disregard ‘Disinformation’
Chiejina urged the public to disregard what he described as “deliberate disinformation” from groups that benefit from Nigeria’s reliance on imported fuel. “We continue with our determination to provide affordable, good-quality, domestically refined petroleum products in Nigeria,” he said. “However, agents of those who would rather export jobs and import poverty are spreading misleading information.”
The statement criticized recent claims by the Independent Petroleum Marketers Association of Nigeria (IPMAN), Petroleum Retail Outlets Owners Association of Nigeria (PETROAN), and other associations that they could import petrol at prices lower than Dangote Refinery’s. Chiejina insisted that Dangote’s pricing is competitive and aligned with international benchmarks, and that any claims of cheaper imports indicate possible substandard products.
Concerns Over Regulatory Oversight
Chiejina further highlighted the lack of laboratory facilities at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to effectively screen for substandard imports. He cautioned that unregulated, poor-quality imports could impact the health of Nigerians and the longevity of vehicles.
Pricing Breakdown and Policy Critique
Since deregulation, the NNPC has set prices of Premium Motor Spirit (PMS) for domestic marketers at ₦971 per liter for shipments and ₦990 per liter for truck sales. According to Chiejina, Dangote Refinery has reduced its own ship-based price to ₦960 per liter, maintaining ₦990 for truck sales, even while the company awaits clarity on the exchange rate applicable to its crude purchases.
Chiejina concluded by reiterating that Dangote Refinery’s prices are in the national interest and competitive, despite challenges posed by misinformation and regulatory constraints.
