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Dangote Refinery Threatens to Export Petrol as Import Surge Disrupts Domestic Market

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Dangote Refinery Threatens to Export Petrol as Import Surge Disrupts Domestic Market

Dangote Refinery Threatens to Export Petrol as Import Surge Disrupts Domestic Market

The Dangote Petroleum Refinery has warned that it may increase petrol exports as rising imports create uncertainty over domestic demand, making production and inventory planning increasingly difficult. The company said imported Premium Motor Spirit (PMS) accounted for approximately 43 per cent of fuel supplied into the Nigerian market in July, despite its capacity to meet and exceed domestic requirements. The refinery said the continued issuance of petroleum product import licences had created uncertainty in demand planning and inventory management, forcing it to reconsider how much petrol it should keep in stock for the domestic market. According to the company, it has consistently maintained sufficient inventory and reserved product volumes to guarantee steady supply since commencing operations, requiring significant investments in storage, logistics and working capital.

The company said the lack of transparency over the volume of imported petrol expected into the country was making it difficult to plan production and inventory efficiently. “As a responsible energy provider, we have always endeavoured to keep adequate reserves to satisfy local demand at all times. However, in an environment where significant volumes of imported PMS continue to enter the market through licences issued by the regulator, and where there is limited visibility on future import volumes, it becomes commercially unsustainable to continue holding excess inventory indefinitely,” the refinery said in a statement. The refinery explained that maintaining large stock positions without clear visibility into import volumes imposes substantial carrying costs and ultimately undermines efficient market operations.

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The refinery said surplus products that were not immediately absorbed by the domestic market would have to be exported to regional and international markets. It stressed that the development should not be interpreted as a withdrawal from the Nigerian market, insisting that it remained committed to ensuring adequate fuel supply across the country. “Consequently, DPRP’s export volumes have increased in recent months, not because local demand cannot be met, but because excess inventory generated by market uncertainty must be evacuated to avoid unnecessary storage and financing costs,” it emphasised. The company said exports had become necessary to avoid unnecessary storage and financing costs associated with holding excess petrol stocks. It mentioned that it remained ready and able to meet and surpass Nigeria’s petroleum product requirements, while continuing to invest in reliable supply.

Official data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shows how quickly Nigeria’s petrol supply balance has shifted. In May, imported petrol averaged just 5.9 million litres per day, accounting for about 12 per cent of total supply, while domestic sources provided 41.5 million litres per day. The balance shifted dramatically in June. Imports jumped to 18.1 million litres per day—an increase of more than 200 per cent from May—while domestic supply dropped to 32.5 million litres per day. By July, imports had risen further to 19.7 million litres per day as domestic supply declined again to 25.8 million litres per day. The shift marked a reversal from earlier in the year when Nigeria appeared to be moving rapidly towards eliminating petrol imports. Regulators stopped issuing petrol import licences in February after determining that domestic production was sufficient to meet demand.

The dispute over import licences has escalated into legal action. The Dangote Petroleum Refinery has filed a lawsuit against the Federal Government at the Federal High Court in Lagos, challenging the issuance and renewal of fuel import licences by the NMDPRA. The refinery argues that such approvals violate provisions of the Petroleum Industry Act (PIA), which permits imports only when domestic production is insufficient. It also claims the licences breach an earlier court order directing parties to maintain the status quo. The licences were granted to six marketers—including NIPCO, AA Rano, Matrix, Shafa, Pinnacle, and Bono—covering the importation of between 600,000 and 720,000 metric tonnes of petrol. The Nigerian National Petroleum Company Limited (NNPC) has dismissed Dangote’s assertions, claiming that under the PIA, regulators have the discretion to issue import licences to ensure supply security. It has further accused the refinery of attempting to monopolise the market.

The dispute comes at a particularly significant moment for Nigeria’s petroleum industry. Just days before Dangote’s latest statement, the US Energy Information Administration said Nigeria’s seaborne petroleum product exports had increased more than sevenfold since 2023, driven largely by production from the Dangote refinery. Nigeria exported an average of 350,000 barrels of petroleum products per day during the second quarter of 2026, compared with just 46,000 barrels per day in 2023. At the same time, Nigeria’s seaborne petroleum product imports have fallen substantially from nearly 400,000 barrels per day in 2023 to less than 130,000 barrels per day in the second quarter of this year. The refinery, with a nameplate capacity of 650,000 barrels per day, is expected to play a central role in Nigeria’s energy security and foreign exchange earnings as global fuel trade patterns shift amid geopolitical tensions.

The refinery called for greater transparency, improved market coordination, and policies that support local refining, enhance energy security, conserve foreign exchange, and maximise the economic benefits of Nigeria’s investments in domestic refining capacity. It also warned that any future supply shortfalls resulting from market distortions caused by excessive imports and the inability of local refiners to accurately forecast demand should not be blamed on Dangote Refinery.

Dangote Refinery Threatens to Export Petrol as Import Surge Disrupts Domestic Market

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FAAN reinstates Bolt at airports, denies fixing taxi fares

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August 27, 2026

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FAAN reinstates Bolt at airports, denies fixing taxi faresFAAN reinstates Bolt at airports, denies fixing taxi fares

FAAN reinstates Bolt at airports, denies fixing taxi fares

The Federal Airports Authority of Nigeria (FAAN) has cleared Bolt to resume operations at all airports under its management after reaching an operational agreement with the ride-hailing company.

The development follows growing complaints from travellers over the temporary disruption of e-hailing services at Nigerian airports, with passengers raising concerns about higher transportation costs and reduced options for getting to and from airports.

FAAN also apologised to passengers affected by the disruption, acknowledging that the temporary interruption caused inconvenience and increased transportation difficulties for some travellers.

In a statement by its Director of Public Affairs and Consumer Protection, Henry Agbebire, FAAN said it had listened to the concerns raised by passengers and made the necessary adjustments following constructive engagements with Bolt.

The authority said the agreement with Bolt provides an operational framework that allows the company to resume services while complying with requirements relating to airport security, passenger safety, accountability and orderly transportation.

FAAN’s latest announcement marks a significant development after the authority had faced mounting public criticism over restrictions affecting e-hailing operations at some of the country’s airports. FAAN had earlier maintained that it had not imposed a blanket ban on Bolt, Uber or other e-hailing platforms, but said operators needed to work within an appropriate framework for airport operations. (FAAN)

According to FAAN, airports are highly regulated environments, making it necessary for commercial transportation providers to operate under arrangements that give the authority adequate visibility over vehicles, drivers and passenger pick-ups.

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The authority said it had been dealing with challenges including passenger solicitation, touting, random pick-ups, unregulated commercial transportation and concerns about safety, security and accountability.

FAAN said these challenges had become more complicated in situations where drivers operate across multiple ride-hailing platforms, prompting the authority to strengthen its oversight of commercial transportation within airport premises.

At the centre of the controversy is the Airport Car Hire Rank Management System (ACHRAMS), which FAAN introduced to bring greater structure and visibility to airport car-hire operations.

FAAN stressed that ACHRAMS is not an e-hailing application and was not created to compete with Bolt, Uber or any other mobility platform. Rather, the authority describes it as an airport-specific system for managing car-hire ranks, dispatch, identification and operational oversight within FAAN-managed airports. (FAAN)

The authority has also rejected suggestions that ACHRAMS was introduced to create a monopoly in airport transportation.

FAAN said it supports competition and does not intend to prevent passengers from choosing between different transportation providers.

The controversy intensified after passengers began complaining about the cost of airport taxi fares, particularly during the period when access to conventional e-hailing services was disrupted.

Reports from Lagos indicated that some passengers were being quoted fares as high as N30,000 for trips from Murtala Muhammed International Airport to parts of Ikeja, while travellers reported substantially lower prices through alternative ride-hailing services. (Aboki Forex)

FAAN, however, has denied claims that it fixed or introduced the airport taxi fares being discussed.

The authority said the fares existed independently of ACHRAMS and were not newly created by the system. According to FAAN, ACHRAMS merely brought greater visibility and transparency to existing airport taxi rates, making the applicable charges more apparent to passengers.

FAAN acknowledged that the comparison with the lower prices many travellers had become accustomed to through e-hailing platforms understandably fuelled public concern over the cost of airport transportation.

The authority said its actions were motivated by regulatory, safety and security considerations, rather than economic interests.

It nevertheless acknowledged that the immediate effect of the temporary disruption was significant for passengers.

FAAN therefore apologised to travellers and said it appreciated their patience and understanding while discussions with e-hailing operators continued.

The authority said the resolution with Bolt demonstrates that it is possible to maintain the integrity and security of the airport environment while preserving the convenience and freedom of choice associated with e-hailing services.

The latest development is also consistent with FAAN’s earlier position that it wanted to establish a workable framework rather than permanently exclude e-hailing companies from airports. On August 20, the authority said discussions with operators were aimed at resolving issues involving passenger safety, security, operational visibility, accountability and the management of pick-up activities. (FAAN)

Bolt’s own airport guidance already requires its drivers operating at Murtala Muhammed International Airport to comply with FAAN rules, including using designated parking areas for pick-ups and drop-offs. Bolt also warns drivers that violations of airport rules can result in penalties or vehicle impoundment. (Bolt)

Bolt’s official Nigeria platform also lists several Nigerian airports where airport transfers are available, including Murtala Muhammed International Airport, Nnamdi Azikiwe International Airport, Mallam Aminu Kano International Airport, Port Harcourt International Airport and Sam Mbakwe International Airport. (Bolt)

FAAN said it remains in discussions with other e-hailing operators and expects outstanding engagements to be concluded in the coming days.

The authority reiterated that passengers remain free to choose from available authorised transportation options that best meet their needs.

FAAN said its responsibility is to ensure that whichever authorised service passengers choose operates within a safe, secure, orderly and accountable airport environment.

The reinstatement of Bolt is expected to give air travellers greater choice and restore access to app-based transportation at FAAN-managed airports, while the authority continues efforts to regulate commercial transportation without compromising passenger safety and convenience.

FAAN assured travellers that their safety, security, convenience and overall airport experience would remain at the centre of its decisions.

FAAN reinstates Bolt at airports, denies fixing taxi fares

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Dangote Refinery drives sevenfold surge in Nigeria’s petroleum product exports

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August 26, 2026

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Dangote Refinery Threatens to Export Petrol as Import Surge Disrupts Domestic Market

Dangote Refinery drives sevenfold surge in Nigeria’s petroleum product exports

Nigeria’s petroleum product exports have surged nearly sevenfold since 2023, with the Dangote Petroleum Refinery playing a major role in the country’s rapid shift from dependence on imported refined products to increased domestic supply and exports.

The latest figures from the United States Energy Information Administration (EIA) show that Nigeria’s seaborne petroleum product shipments averaged 561,000 barrels per day (bpd) in the second quarter of 2026, compared with an annual average of 79,000 bpd in 2023.

The EIA based its assessment on shipping data from energy intelligence firm Vortexa Analytics, which showed that about 350,000 bpd of the products shipped during the second quarter were exported. That compares with an annual average of just 46,000 bpd in 2023.

The dramatic increase has strengthened Nigeria’s position in the international refined petroleum market, with the EIA attributing much of the growth to the commencement of operations at the Dangote refinery in January 2024.

The 650,000-barrels-per-day refinery, located in the Lekki Free Zone in Lagos, has significantly increased Nigeria’s domestic refining capacity and enabled the country to produce larger volumes of petrol, diesel, aviation fuel and other refined products.

“With increased supply of petroleum products in Nigeria from the country’s largest refinery, imports fell, exports increased, and Nigeria became more self-sufficient in refined petroleum products,” the EIA said.

Before the Dangote refinery began operations, Nigeria’s state-owned refineries collectively shipped less than 100,000 bpd of petroleum products to domestic and international destinations, according to the EIA.

The increase in shipments accelerated after the Dangote facility commenced operations and received another boost following the completion of maintenance and expansion work in February 2026.

The work increased the refinery’s crude distillation capacity from 650,000 bpd to 700,000 bpd, allowing the facility to process more crude and increase the volume of refined products available for domestic consumption and export.

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The rise in production has coincided with a sharp decline in Nigeria’s dependence on imported petroleum products. Seaborne imports, which were close to 400,000 bpd in 2023, fell to less than 130,000 bpd in the second quarter of 2026, according to the EIA.

At the same time, the volume of petroleum products transported between Nigerian ports has increased substantially.

Intra-Nigerian petroleum shipments reached 211,000 bpd in the second quarter of 2026, compared with 81,000 bpd in 2025 and only 33,000 bpd in 2023.

The increase indicates that more refined products are being distributed by sea within Nigeria, particularly from coastal refining and storage facilities to other parts of the country.

Nigeria’s growing refining capacity has also opened up greater opportunities in overseas markets, particularly Europe.

EIA data showed that Nigerian seaborne petroleum product exports to Europe averaged 130,000 bpd in the second quarter of 2026. This was up from 40,000 bpd in 2025 and 15,000 bpd in 2023, representing an increase of roughly 767 per cent over the 2023 level.

Nigeria also increased shipments to other African markets. Exports to African destinations outside Nigeria reached nearly 120,000 bpd in the second quarter, compared with 89,000 bpd in 2025.

The country also shipped significant volumes of petroleum products to Asia and Oceania, further demonstrating the expanding reach of Nigeria’s refined fuel exports.

The EIA said the growth occurred partly amid disruptions to petroleum product flows through the Strait of Hormuz, which created opportunities for alternative suppliers as some international markets faced tighter supplies.

The development marks a significant change in Nigeria’s petroleum trade. For decades, the country exported crude oil while importing substantial quantities of refined products because its domestic refineries operated below capacity or remained shut for extended periods.

The Dangote refinery has altered that pattern by increasing the volume of refined products available within Nigeria while creating surplus volumes for export.

The EIA had previously reported that Nigeria’s petroleum product exports almost quadrupled in 2024 following the Dangote refinery’s commencement of operations, rising to an average of 146,000 bpd from 46,000 bpd in 2023.

The refinery’s growing contribution is also coming as its owners prepare for another major expansion. Dangote Group plans to add a second 750,000-bpd crude distillation unit by 2028, which would further increase the complex’s potential refining capacity.

The company is also preparing for a potential initial public offering (IPO). Recent reports indicate that Dangote Refinery is targeting an October 2026 IPO as investors continue to assess the refinery’s crude supply arrangements, production costs and long-term growth prospects.

Despite the significant rise in domestic refining, the refinery still relies partly on imported crude oil to maintain operations. Recent reports indicate that between 30 and 40 per cent of the refinery’s crude supply currently comes from imports.

Nevertheless, the latest EIA data show that the refinery has become an increasingly important component of Nigeria’s downstream oil sector, contributing to higher domestic product availability and a substantial increase in exports.

The development could strengthen Nigeria’s role as a major supplier of refined petroleum products in Africa, particularly as demand for fuels continues to grow across the continent.

For Nigeria, the combination of rising exports, falling imports and increasing domestic shipments represents a major transformation in the country’s petroleum products market.

The latest figures therefore underline the growing economic significance of the Dangote Refinery and its potential to reshape Nigeria’s position in both the domestic and international petroleum market.

Dangote Refinery drives sevenfold surge in Nigeria’s petroleum product exports

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Dangote Raises Petrol to N1,200/Litre Despite Crude Price Decline – Second Hike in Five Days

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August 26, 2026

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Dangote Raises Petrol to N1,200/Litre Despite Crude Price Decline – Second Hike in Five Days

Dangote Raises Petrol to N1,200/Litre Despite Crude Price Decline – Second Hike in Five Days

Refinery implements N15 increase even as Brent crude falls by $5, raising questions about domestic pricing dynamics.

Dangote Petroleum Refinery and Petrochemicals FZE has increased the gantry price of Premium Motor Spirit (petrol) from N1,185 to N1,200 per litre, effective August 26, 2026, marking the second price adjustment in less than a week and adding to the financial burden on Nigerian consumers. The latest increase comes despite a notable decline in international crude oil prices, raising fresh questions about the factors driving domestic fuel costs in Africa’s largest economy.

In an official communication to customers issued on Tuesday, the refinery’s Group Commercial Operations announced revised depot prices for gantry and coastal deliveries. The email, titled ‘PMS Price Change Communication (N1,185 per Litre To N1,200 Per Litre)’, directed customers to take note of the revised prices effective from Wednesday. According to the price table contained in the notice, the coastal price rose from N1,562,265 per metric tonne to N1,582,380, representing an increase of N20,115 per metric tonne. The refinery further instructed customers to return all Authorisation to Collect documents for repricing, adding that new volume contracts would be issued for immediate loading resumption.

The latest adjustment represents a N15 per litre increase in the gantry price and comes barely five days after the refinery raised the price from N1,165 to N1,185 per litre on August 21. The two adjustments have therefore added N35 per litre to the refinery’s gantry price within a short period, a development that is expected to transmit pressure through the downstream market and potentially push pump prices to an average of N1,250 per litre as marketers factor in transportation and other costs.

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The timing of the increase has raised eyebrows among industry observers, coming as international crude prices have moved in the opposite direction. When Dangote announced the previous N20 increase on August 20, Brent crude stood at approximately $93.48 per barrel amid heightened concerns over supply disruptions and tensions around the Strait of Hormuz. However, by Tuesday, Brent crude had fallen by $3.74 to $88.43 per barrel as the market reacted to new United States sanctions on Iran, representing a decline of about $5 per barrel, or more than five per cent, over the period.

Data from oilprice.com on Tuesday showed West Texas Intermediate crude trading at $82.13 per barrel, down $2.88 or 3.39 per cent, while Brent crude stood at $88.37 per barrel, declining by $3.80 or 4.12 per cent. Murban crude also fell to $92.71 per barrel, shedding $8.73 or 8.61 per cent. Reuters reported that oil prices fell as investors viewed the latest US sanctions against Iran as less threatening to global oil supplies than a military escalation. The contrast means that while the refinery increased its PMS price when crude was above $93 per barrel, it is implementing another increase when the international benchmark has dropped below $89. This divergence between falling international crude prices and rising domestic petrol prices is likely to fuel fresh debate over the factors determining pump prices in Nigeria’s deregulated downstream petroleum market.

Industry analysts point to structural factors beyond international crude prices that explain the disconnect between global benchmarks and local fuel costs. The primary challenge lies in the naira-for-crude arrangement between the Nigerian National Petroleum Company (NNPC) and the Dangote Refinery. Under this programme, Dangote was expected to receive crude oil in naira at a discounted rate, enabling it to produce petrol at lower costs for domestic consumption. However, a significant shortfall in supply has undermined this arrangement. According to refinery management, Dangote receives only about five crude cargoes per month under the naira programme, far short of the thirteen cargoes required for full capacity operations. This forces the refinery to procure the remaining cargoes using foreign exchange, exposing production costs to the volatile naira-to-dollar exchange rate and international crude prices.

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A senior refinery official, speaking on condition of anonymity, confirmed that the Federal Government has promised to make dollars available to the refinery in exchange for the petrol it sold in naira, as the refinery had bought crude oil in dollars. Under the proposed arrangement, the government would supply enough foreign exchange to cover the refinery’s crude import costs, which run into billions of dollars. The Dangote refinery was supposed to receive about 13 million barrels of crude monthly under the naira-for-crude deal but has since been getting less than 35 per cent of this allocation, thereby relying on crude imports from Ghana, the United States, Angola, and recently the United Arab Emirates. Official cargo records show the refinery imported 40.40 million barrels of crude between May and June 2026 at a combined cost of about $4.48 billion, with May cargoes averaging $124.80 per barrel and June cargoes averaging $95.25 per barrel.

The price increase comes against a backdrop of broader concerns about Nigeria’s ability to supply its growing domestic refining capacity. Analysts note that Nigeria’s petroleum challenge is shifting from inadequate refining capacity to insufficient crude availability, as domestic refining capacity expands while upstream production struggles to meet competing demands for refinery feedstock, export obligations, and crude-backed financing commitments. Nigeria’s crude oil output hit 1.56 million barrels a day in June 2026, the highest since 2020, but still a fraction of what a fully built-out domestic refining sector will eventually demand. Dangote’s 650,000-barrel-per-day plant alone, operating at 85 per cent utilisation, needs roughly 552,500 barrels of crude every day – about 35 per cent of everything Nigeria currently pumps out of the ground. Any slippage in production, a pipeline outage, or a security incident in the Niger Delta is sufficient to reopen the same allocation disputes that produce pricing volatility.

The persistent price hikes have compounded the economic hardship facing Nigerians, already grappling with a broader cost-of-living crisis following the removal of fuel subsidies in 2023. The N15 increase is expected to result in higher pump prices as oil marketers factor in transportation, landing, and other downstream costs, with petrol expected to return to an average of N1,250 per litre. For households reliant on petrol generators for electricity, the situation has become particularly dire. A typical middle-class family running a generator for six hours daily now faces significantly higher energy costs, making alternative power sources increasingly cost-effective. The Dangote Refinery, once hailed as a solution to Nigeria’s fuel import dependency, continues to face structural challenges that prevent it from delivering affordable fuel to Nigerians. The combination of inadequate naira-denominated crude supply, currency volatility, and the need to source crude internationally continues to push prices upward, creating a paradox where Africa’s largest oil producer and its newest refinery cannot shield citizens from high fuel costs.

Dangote Raises Petrol to N1,200/Litre Despite Crude Price Decline – Second Hike in Five Days

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