South Africa, Angola, others to lift fuel from Dangote refinery

The Dangote Refinery and Petrochemical plant, a massive $20 billion facility based in Lekki, Lagos, is poised to start fuel exports to South Africa, Angola, and Namibia, according to information gathered by The Punch.

The refinery, with a production capacity of 650,000 barrels per day, is reportedly in advanced negotiations with these countries to begin fuel supply.

In addition to these nations, four other African countries—Niger Republic, Chad, Burkina Faso, and the Central African Republic—have also initiated talks with Dangote to explore potential fuel import arrangements, as further confirmed by sources.

It’s anticipated that more countries will express interest in procuring fuel from the refinery over the coming months.

Recently, Ghana signaled its intention to purchase petroleum products from the Dangote refinery as well.

Ghana’s National Petroleum Authority Chairman, Mustapha Abdul-Hamid, noted that sourcing fuel from the Dangote refinery could eliminate the country’s monthly $400 million fuel import expenses from Europe.

“I can confirm that discussions are well underway with Ghana, Angola, Namibia, and South Africa, while initial talks are also in progress with Niger, Chad, Burkina Faso, and the Central African Republic,” the source revealed.

However, the refinery has faced local resistance. Many Nigerian fuel marketers are reportedly choosing to import fuel rather than buying from Dangote.

The Independent Petroleum Marketers Association of Nigeria and the Petroleum Products Retail Outlets Owners Association of Nigeria recently argued for continued importation, citing that Dangote’s prices are too high for the local market.

The associations are awaiting foreign exchange approvals from the Central Bank of Nigeria and permits from the Nigerian Midstream and Downstream Petroleum Regulatory Authority to proceed with their import plans.

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The marketers have argued that sourcing more affordable petrol abroad would help alleviate the impact of recent price hikes on consumers following the removal of the fuel subsidy.

However, the NMDPRA has denied that it grants import licenses to associations, explaining that such licenses must be obtained individually by each marketer.

“The reality is that they cannot apply for a petrol import license as a collective body. Each marketer must submit an individual application to qualify for a license,” an NMDPRA official said anonymously, due to the matter’s sensitivity. “We will not issue permits on a group basis.”

In response, yhe National Public Relations Officer of PETROAN, Dr. Joseph Obele, disclosed that the association had already applied for import licenses through its newly established trading subsidiary about a month ago. Obele described Dangote as an “aggressive competitor” bent on monopolizing the fuel market, adding that the refinery’s market dominance threatens competition.

“Dangote is shutting all doors and windows to ensure no other entity enters the market,” Obele commented. “As soon as the regulatory agency approves our authority to import, the price of PMS (petrol), which is currently burdening Nigerians, will plummet. The fuel we plan to import is of superior quality to his, but he’s spreading the narrative that no product can surpass his own.”

Obele urged Nigerians to rally for market liberalization, advocating against monopolistic control. “If we don’t dismantle monopolies, we will remain trapped in exploitation,” he stated. “We call on Nigerians to support us in breaking this monopoly so we can free the market from this restrictive grip.”

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