The Dangote Petroleum Refinery may soon pull the plug on petrol supplies to major oil marketers who continue to import Premium Motor Spirit (PMS), in a move that could trigger a fresh battle in Nigeria’s already tense downstream oil market.
The $20 billion Lekki-based refinery is considering restricting, or possibly stopping, the sale of petrol to marketers still bringing imported fuel into the country.
The move, which could take effect as early as this week, is reportedly being considered over concerns about product quality, transparency and the protection of the Dangote brand.
Sources familiar with the refinery’s position said Dangote is particularly worried that some marketers may be mixing imported petrol with PMS bought from the refinery before releasing the blended product into the market.
According to the sources, the practice could create a serious problem for the refinery because consumers may be unable to determine whether the petrol they are buying came directly from Dangote or was subsequently mixed or handled by third parties.
A source familiar with the refinery’s position said it was difficult to justify the heavy investment in producing high-quality fuel for Nigerians only for the product to be mixed with imported petrol of uncertain quality, potentially leaving the resulting fuel associated with Dangote.
The refinery is also said to be unhappy with what it considers inadequate laboratory and quality-control infrastructure for independently testing and certifying imported petroleum products before they enter the Nigerian market.
The concern is that without a robust system for testing imported PMS, it could become difficult to establish whether products entering the country meet the required specifications.
IMPORTS RISE AS LOCAL REFINING BOOMS
The brewing showdown comes at a crucial time for Nigeria’s downstream petroleum sector.
After decades of dependence on imported refined products, Nigeria is witnessing a major shift as the Dangote refinery and other domestic facilities increase production.
Yet petrol imports have continued to rise.
The Centre for the Promotion of Private Enterprise recently raised alarm over a sharp increase in petrol imports, saying daily imports climbed from about 5.9 million litres in May to 19.7 million litres in July 2026. It also said imported petrol’s estimated market share rose from 12.4 per cent in May to 43.3 per cent in July.
The development has intensified debate over whether imported petrol should continue to compete aggressively with locally refined products when domestic refining capacity is expanding.
The CPPE has urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority to ensure that petrol imports are tied to clearly established supply gaps rather than allowing imports to displace available domestic production.
DANGOTE TURNS EXPORT POWERHOUSE
Dangote’s latest move is coming against the backdrop of the refinery’s rapidly growing influence both at home and abroad.
The refinery has a nameplate capacity of 700,000 barrels per day, following the completion of maintenance and expansion work that increased its crude-processing capacity from 650,000 barrels per day to 700,000 barrels per day.
The United States Energy Information Administration said Nigeria’s seaborne petroleum-product shipments averaged 561,000 barrels per day in the second quarter of 2026, up dramatically from an annual average of 79,000 barrels per day in 2023.
Of that volume, exports averaged about 350,000 barrels per day, while seaborne imports into Nigeria fell to less than 130,000 barrels per day during the quarter, compared with almost 400,000 barrels per day in 2023.
The EIA attributed the dramatic transformation largely to the commissioning and increased output of the Dangote refinery.
The refinery has also become a major player in the international aviation-fuel market.
In July, Dangote reportedly remained Europe’s largest supplier of imported jet fuel for the second consecutive month, exporting more than 400,000 tonnes to the continent and accounting for roughly one-fifth of Europe’s jet-fuel imports.
MARKETERS FACE NEW PRESSURE
The proposed restriction could put major marketers in a difficult position, forcing them to reconsider whether to continue importing petrol while also sourcing from Dangote.
For the refinery, however, the issue is being framed not simply as a battle over market share but as one of product integrity and consumer protection.
The underlying argument is that consumers should be able to identify the source and quality of the petrol they buy, particularly where products bearing the reputation of a major refinery may have been blended or handled elsewhere.
If Dangote eventually implements the proposed restriction, it could mark one of the strongest interventions yet by a domestic refinery in Nigeria’s increasingly competitive petrol market.
It could also reignite the wider debate over the future of petrol imports, the role of the NMDPRA in regulating the market and whether imported fuel should be allowed to compete with locally refined products when domestic supply is available.
For now, the refinery is reportedly consulting stakeholders and considering possible last-minute interventions before taking a final decision.
Don’t Miss Out! Join our WhatsApp Channel for instant news updates. Click here to join
ALSO READ:
Dangote Refinery Threatens Petrol Export As Imports Flood Nigerian Market
