Marketers Accuse Dangote Refinery of Non-Supply of Paid Fuel

A fresh controversy has emerged in Nigeria’s downstream petroleum sector as independent fuel marketers have accused the Dangote Petroleum Refinery of failing to supply petroleum products despite receiving full payments for orders placed weeks ago. The marketers, under the aegis of the Independent Petroleum Marketers Association of Nigeria (IPMAN), expressed frustration over what they described as “delayed or unfulfilled supply commitments,” claiming that the situation is already causing financial strain and operational setbacks for several depots and retail outlets across the country.

According to reports from industry insiders, several marketers had made advance payments running into billions of naira to the refinery for the supply of Premium Motor Spirit (PMS), Automotive Gas Oil (diesel), and Aviation Turbine Kerosene (ATK). However, they alleged that the refinery has yet to deliver the products as agreed, citing logistical and production challenges as reasons for the delay.

A senior member of IPMAN, who spoke on condition of anonymity, said, “Many of our members paid for products weeks ago, but the Dangote Refinery has not fulfilled its supply obligations. Some of us obtained bank loans to finance these purchases, and the delay is creating serious cash flow problems.”

He added that the refinery’s inability to meet delivery timelines has forced marketers to source products from other suppliers at higher prices, eroding profit margins and affecting pump prices in some regions. “The situation is not sustainable. We were optimistic that the Dangote Refinery would stabilize product availability and pricing, but what we are experiencing now is quite the opposite,” he said.

Reacting to the allegations, the management of Dangote Refinery denied any deliberate delay or refusal to supply products, explaining that the refinery is still in its early phase of production ramp-up and that product allocation is being done gradually to ensure quality control and regulatory compliance.

In a statement issued by its spokesperson, the company said, “The Dangote Refinery remains committed to serving the Nigerian market efficiently. However, as a newly operational facility, we are currently calibrating our systems to meet both domestic and export demands. Some temporary delays in product allocation may occur, but all customers who have made payments will receive their supplies as scheduled.”

The refinery further clarified that recent disruptions in product evacuation were partly due to ongoing maintenance and testing procedures required to optimize output and ensure consistent fuel quality. The company also attributed part of the delay to congestion at its loading terminals, where infrastructure expansion and pipeline testing were being finalized.

Industry experts believe the dispute highlights the complex transition period Nigeria’s petroleum market is undergoing as it shifts from full import dependence to domestic refining. With the Dangote Refinery expected to meet most of Nigeria’s fuel demand once it reaches full capacity, temporary operational challenges are not unusual in such large-scale projects.

An energy analyst, Dr. Bala Mohammed, said the tension between marketers and the refinery reflects the teething problems of a new production system. “Dangote Refinery is still fine-tuning its operations and quality assurance systems. Marketers need to exercise patience because large refineries usually take several months before achieving stable output and logistics efficiency,” he explained.

He also noted that coordination between the refinery, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian National Petroleum Company Limited (NNPCL) will be crucial to ensuring seamless distribution and pricing stability in the coming months.

Despite assurances from the refinery, IPMAN insists that the current delays are hurting business operations and called on the federal government to intervene. The association’s National Vice President, Alhaji Hamid Adisa, urged regulatory authorities to ensure transparency in the refinery’s supply procedures and to protect marketers who have fulfilled payment obligations.

Adisa stated, “We support local refining and we are proud that the Dangote project is in Nigeria. However, the refinery must be accountable and fair in its dealings. We cannot pay billions and wait indefinitely for supplies that were supposed to be ready weeks ago. The government must step in to ensure orderliness in the system.”

Meanwhile, the situation has sparked concerns among retail fuel station owners, some of whom warned that prolonged delays could lead to temporary supply shortages and slight price adjustments at the pump. Though there has been no official increase in prices, some depots reportedly raised ex-depot rates marginally due to limited availability.

The NMDPRA has acknowledged the reports and said it is monitoring the situation closely. A senior official of the agency confirmed that the regulator had received complaints from marketers and is engaging with the refinery to address the bottlenecks. “We are aware of the concerns raised and are working with both parties to ensure that product distribution resumes smoothly,” the official said.

The Dangote Refinery, commissioned in May 2023, is the largest single-train refinery in the world with a capacity of 650,000 barrels per day. The plant, located in the Lekki Free Trade Zone, Lagos, was expected to drastically cut Nigeria’s dependence on imported petroleum products and stabilize fuel prices across the country.

However, the recent dispute underscores the challenges of scaling up domestic refining in a market long dominated by imports. While many Nigerians still view the refinery as a game-changer, the latest development has raised questions about its readiness to meet national demand on schedule.

Market observers are optimistic that the issues will be resolved soon, emphasizing that early operational hiccups are normal for a facility of such magnitude. “Once full production and distribution are achieved, the refinery will transform Nigeria’s energy market and make situations like this a thing of the past,” said energy economist, Professor Chuka Nwosu.

For now, independent marketers continue to hope for swift resolution, as every day of delay deepens their financial exposure and strains their operations. As the refinery works to ramp up output and streamline logistics, the coming weeks will be crucial in determining how quickly it can regain the confidence of fuel distributors and the public.