Dangote Rejects Claims of Selling Petrol Cheaper in Togo Than in Nigeria

Dangote Petroleum Refinery has firmly denied allegations that it sells petrol at lower prices in Togo than within Nigeria, calling such claims misleading and part of a broader attempt by some oil marketers to undermine its free distribution initiative. The controversy has prompted responses from several stakeholder groups, and Dangote says it is committed to ensuring its pricing practices are transparent and fair.

The issue came to light after the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and some petroleum depot owners claimed that petrol supplied to international traders via Lomé, Togo, was being sold at a cost ₦65 cheaper per litre than what domestic marketers are being charged in Nigeria. Marketers said that in some cases, they found it more economical to source Dangote petrol from Togo and then transport it back into Nigeria, pointing to what they view as anti-competitive pricing by the refinery.

Dangote, however, rejected these assertions in a statement, arguing that the claim does not reflect current market realities. The refinery pointed to the pump price in Lomé, which averages around 680 CFA francs per litre—equivalent to approximately ₦1,826, according to Dangote’s assessment—significantly higher than many fuel prices being reported within Nigeria. The company argued that such data undermines suggestions that fuel is cheaper abroad.

A representative of Dangote said the allegations appeared to be driven by certain segments of the downstream sector resisting reforms, especially its logistics-free fuel distribution drive. The refinery insisted that many of the extra costs claimed by marketers—transport, border fees, handling between countries—were being ignored in the price comparisons, which made the comparisons unfair and partial.

DAPPMAN responded by demanding that Dangote offer discounts to domestic marketers to offset costs of freight and handling between its jetty and the marketers’ depots. The association insisted that unless such adjustments are made, local marketers will remain at a competitive disadvantage, especially when importers under-cut local supply by sourcing fuel from abroad.

In addition, Dangote defended its broader price reductions, which recently saw its ex-gantry price cut to ₦820 per litre and expected pump prices in many states to settle at around ₦840 per litre. The refinery said such price slashes are part of its market-wide strategy to improve accessibility and affordability for Nigerian consumers. The “free delivery” scheme, also announced by Dangote, was introduced to reduce logistics costs for marketers, though some marketers claim that there are still hidden costs involved when they have to use Dangote-owned trucks for certain percentages of their allocations.

Market watchers see the dispute as more than a matter of price. Observers say it highlights the tension between deregulation of fuel markets, competition, and the need to protect smaller marketers. Some of these marketers feel that Dangote’s scale and direct distribution model give it an edge that is hard to match without significant investment or government support.

Dangote also challenged the basis of DAPPMAN’s price comparisons, calling for more accurate data and fairer terms of trade in pricing discussions. The refinery claimed that the international cost of crude, foreign exchange rates, transportation fees, and border costs all contribute significantly to the landed cost of fuel in neighboring countries, and these factors are often omitted in marketers’ comparisons.

Human rights lawyer Femi Falana joined the debate, urging the government to review fuel surcharge proposals and ensure that Nigerians are not burdened by hidden taxes. Falana noted the disparity claims, citing the alleged N₦65 difference, demanding more transparency and supervision.

Regulators are also stepping into the conversation. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been called upon by marketers to investigate the pricing structures and ensure compliance with downstream sector regulations. Dangote has maintained that its pricing is benchmarked internationally, consistent with industry norms, and aligned with its contracts and supply obligations.

As the debate continues, many Nigerians are watching the outcome closely. The questions center on whether fuel pricing will align more clearly with local costs, whether domestic marketers will receive fairer treatment in pricing and logistics, and whether regulatory oversight can ensure that market players cannot exploit international borders to advantage.

In summary, while claims persist that Dangote petrol is cheaper in Togo than in Nigeria, Dangote has rejected these explanations and demanded that comparisons take into account all cost components, including cross-border transportation and currency value differences. The controversy underscores broader challenges in Nigeria’s downstream petroleum sector involving pricing fairness, competition, and market reform.

If you want, I can pull up exact comparative figures for fuel prices in Togo vs Nigeria to help clarify things better.