Why Imported Fuel Landing Cost Is Cheaper Than Dangote Gantry Price — Marketer - Newstrends
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Why Imported Fuel Landing Cost Is Cheaper Than Dangote Gantry Price — Marketer

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Why Imported Fuel Landing Cost Is Cheaper Than Dangote Gantry Price — Marketer

Why Imported Fuel Landing Cost Is Cheaper Than Dangote Gantry Price — Marketer

The recent debate over why the landing cost of imported fuel is cheaper than Dangote Refinery’s gantry price has finally been addressed by one of the industry’s key stakeholders. Mr Adetunji Oyebanji, former Chairman of the Major Energies Marketers Association of Nigeria (MEMAN) , has explained that the price difference comes down to one critical factor: product specifications.

According to Oyebanji, Dangote’s gantry price is higher because the refinery is producing fuel with higher product specifications intended for export markets. To export products to Europe and the United States, the specifications must meet higher standards than what is required for products imported into Nigeria. Oyebanji pointed out that imported fuel is cheaper because the specification is not the same, though the product specification must still conform to Nigerian law. He explained that the difference in price depends on specifications, and he believes that Dangote is producing higher specification because it has to export, and the export specification to be able to export to Europe and US is a higher standard to what is allowed by import into Nigeria. So by definition, it is cheaper, and while it shouldn’t be, that is what it is. He further noted that import is not allowed on a whole scale, but on certain specifications, and there are also export specifications to places.

Oyebanji argued that the limited import of fuel into Nigeria is another factor keeping prices high. He stated that if the Nigerian government allowed more imports, it would force Dangote to reduce its prices. He explained that allowing more import would force Dangote to reduce price, but because of low import, Dangote, being the dominant in the market, will be the one dictating the price. He emphasized that the only thing that can bring price down is regular competition in the market.

Before the recent reduction in Dangote’s prices, data from MEMAN revealed a significant gap between the cost of imported fuel and Dangote’s gantry price. On June 2, 2026, the landing cost of imported petrol was N1,118.75 per litre, while Dangote’s gantry price stood at N1,250 per litre. The gap was even wider for diesel, with a landing cost of N1,470.38 per litre compared to Dangote’s N1,700 per litre. Aviation Turbine Kerosene (ATK) landed at N1,426.24 per litre, while Dangote’s gantry price was N1,650 per litre.

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Despite the presence of the Dangote Refinery, Nigeria reverted to being a net importer of petrol in May 2026. According to Argus Media, petrol deliveries into Nigeria averaged 57,000 barrels per day in May, while exports stood at 23,000 barrels per day. This development reversed the country’s net export position recorded in March and April, when local supply exceeded imports. Industry data indicated that the increase in imports was largely driven by maintenance activities at the 700,000-barrels-per-day Dangote Refinery in Lekki. The refinery’s Residual Fluid Catalytic Cracker (RFCC) , a critical unit responsible for gasoline production, underwent maintenance during the month, affecting output and creating the need for additional fuel imports. The RFCC unit converts heavy refinery residues into valuable fuels including gasoline, making it one of the most important units in a modern refinery.

The temporary reduction in local production prompted marketers and refiners to source more petrol from Europe, which supplied Nigeria’s entire import requirement in May. Norway emerged as the largest supplier, followed by Italy and France. Data also showed that both the Nigerian National Petroleum Company Limited (NNPC) and Dangote Refinery participated in fuel imports during the period. NNPC imported approximately 11,000 barrels per day, while Dangote accounted for 27,000 barrels per day. The figures underline the unusual situation in which the refinery remained both the country’s largest producer and one of its biggest importers of petrol.

The increase in imports came after the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) approved substantial import allocations for the second quarter of the year. On May 6, 2026, NMDPRA issued six Nigerian marketers with new gasoline import licenses, equating to a total volume of 720,000 metric tons, or roughly a fifth of the country’s average Q1 consumption. The licensed companies include Matrix, AA Rano, AYM Shafa, NIPCO, Pinnacle, and Bono. This was a significant policy departure from recent market norms, which had seen NMDPRA heavily regulate foreign arrivals of Nigeria’s main motor fuel in order to support Dangote Refinery.

Dangote Industries recently confirmed that the refinery’s nameplate capacity has been increased to 700,000 barrels per day from 650,000 barrels per day, a move expected to strengthen gasoline production capacity once all processing units return to full operation. The RFCC unit is expected to return to full rates by mid-June after repairs to a flue gas slide gate valve. Market analysts believe the setback may be short-lived, as maintenance schedules and operational adjustments can still create temporary supply gaps that require imports to bridge.

Why Imported Fuel Landing Cost Is Cheaper Than Dangote Gantry Price — Marketer

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Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention

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Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention

Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention

Continental Reinsurance Holdings Limited has strengthened its investment proposition ahead of its proposed listing on the Botswana Stock Exchange (BSE), following regulatory approval of its Supplementary Prospectus, which introduces significant changes to its shareholding structure and incorporates improved half-year financial results.

The development is expected to boost investor confidence in the planned Initial Public Offering (IPO), particularly following the decision by promoter-controlled existing shareholder vehicle, ACA Cornerstone Limited, to retain its entire stake in the company rather than exit as initially contemplated.

Under the revised offer structure, ACA Cornerstone will retain all 253,951,336 shares it currently holds, representing approximately 11.9 per cent of Continental Reinsurance Holdings’ enlarged issued share capital after completion of the offer, assuming all contemplated new shares are issued.

The shareholder has also provided a formal undertaking, subject to specified conditions, to retain the shares for a minimum of five years following the company’s listing.

The commitment represents a significant shift from the original offer structure and signals continued confidence in the company’s business prospects, while strengthening alignment between existing and prospective shareholders.

Commenting on the development, Group Managing Director of Continental Reinsurance Holdings, Mutsunge Lawrence Nazare, said the revised offer reflected the company’s willingness to engage with investors and address their concerns.

“We have engaged closely with investors and taken on board their feedback. The revised offer reflects that engagement and reinforces our long-term investment proposition,” Nazare said.

He explained that ACA Cornerstone’s decision to remain invested, alongside its five-year share retention undertaking, demonstrated its continued commitment to the business and its future.

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According to him, the development would strengthen the relationship between existing and incoming shareholders as the company prepares to enter the Botswana Stock Exchange.

Beyond the revised shareholding arrangement, the Supplementary Prospectus incorporates the Group’s audit-reviewed interim financial results for the six months ended June 30, 2026, showing a significant improvement in profitability and underwriting performance.

The company’s profit before tax surged by approximately 352 per cent to P79.2 million, compared with P17.5 million recorded during the corresponding period of 2025.

Similarly, profit after tax increased by approximately 902 per cent, rising to P64.4 million from P6.4 million in the previous year’s comparable period.

Insurance revenue also recorded growth, increasing by 2.4 per cent to P1.213 billion, reflecting continued business activity and revenue generation across the Group’s operations.

The company also reported a notable improvement in its underwriting performance, with its underwriting margin rising to 6.8 per cent from 4.2 per cent in the corresponding period of the previous year.

The improved margin points to stronger underwriting results during the period, complementing the significant growth recorded in the Group’s overall profitability.

As of June 30, 2026, Continental Reinsurance Holdings reported total assets of P3.27 billion and shareholders’ equity of P1.43 billion, providing further insight into its financial position ahead of the proposed public listing.

Despite the changes to the offer structure and the improved financial performance, the company said its offer price would remain unchanged at P1.00 per share.

Continental Reinsurance Holdings is maintaining its target of raising USD30 million in new growth capital through the offer for subscription. The funds are expected to support the Group’s growth ambitions and strengthen its capacity to pursue opportunities within the reinsurance market.

The Public Offer will remain open until 15:30 on Friday, November 20, 2026, while the company’s listing on the Main Board of the Botswana Stock Exchange is scheduled for December 10, 2026, subject to the fulfilment of applicable listing requirements.

The company has also made provisions for investors who submitted applications before the publication of the Supplementary Prospectus to reconsider their investment decisions in light of the revised offer.

Such investors may maintain, amend or withdraw their existing applications. However, the deadline for submitting amendment or withdrawal notices is November 11, 2026.

Applications for which no amendment or withdrawal notice is received by the stipulated deadline will remain valid and unchanged.

The Supplementary Prospectus is expected to be read alongside the original Prospectus dated August 4, 2026. Both documents are available on the company’s website, www.continental-re.com, as well as through its sponsor, Motswedi Securities.

With the retention of a major existing shareholder, a five-year commitment against an early exit, and substantially improved interim financial results, Continental Reinsurance Holdings is seeking to reinforce investor confidence as it moves closer to its planned entry into the Botswana capital market.

Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention

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EFCC, NMDPRA Raid Chinese-Linked Illegal Refinery in Ogun, Uncover 90,000-Litre Underground Tanks

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EFCC, NMDPRA Raid Chinese-Linked Illegal Refinery in Ogun, Uncover 90,000-Litre Underground Tanks

 

Officials of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Economic and Financial Crimes Commission (EFCC) have uncovered an illegal refinery allegedly linked to Chinese nationals at Ogere-Remo, Ikenne Local Government Area of Ogun State.

The facility, which occupies more than three hectares of land, was raided on Wednesday following intelligence gathered by the EFCC, revealing what investigators described as a well-fenced but unauthorised crude oil processing operation.

During the operation, the joint team discovered underground tanks suspected to have been used for heating and processing sludge oil, a waste product from refining, as well as substances believed to be Automotive Gas Oil (AGO), commonly known as diesel.

NMDPRA officials subsequently sealed the facility pending further investigation.

Speaking during the inspection, the Ogun State Coordinator of NMDPRA, Dr Atilola Akinyemi, said the facility was operating without approval or a licence from any recognised regulatory authority.

He disclosed that an underground storage installation behind the facility had an estimated capacity of more than 90,000 litres, alongside underground heating systems, water hydrants for cooling, locally fabricated tanks and silos designed for separating processed substances.

Describing the operation as illegal, Akinyemi said the operators appeared to possess technical expertise but had deliberately designed the facility to evade regulatory oversight.

“This facility you see here is very crude and completely illegal. This is not a refinery by any standard. It does not have a permit from any regulatory authority and its operations are unknown to the relevant authorities.

“They appear to be technically skilled people who have deliberately designed this facility to circumvent government regulations. When we examine their final product, it may look like diesel to the average person, but we cannot classify it as diesel until laboratory tests have been conducted,” he said.

The EFCC Zonal Director, Lagos Zonal Directorate 2, Bawa Usman Kaltungo, said the discovery pointed to a well-established illegal refining operation involving several stages of processing sludge into products resembling diesel.

“What we have seen here is an illegal refinery with a complete setup, featuring all the processes through which sludge passes before being converted into what is commonly referred to as diesel. Judging by the nature of this facility, it has been operating for years,” Kaltungo said.

He raised concerns over the growing involvement of foreign nationals in illegal industrial activities around the Ogere axis, recalling that 14 Chinese nationals were arrested in the area a week earlier over alleged illegal lithium processing.

According to him, investigations into the earlier operation revealed immigration irregularities, with some of the suspects allegedly lacking passports, while others were found to have overstayed their visas by about three months.

“Some of them had passports, while others did not. Even among those who had passports, we discovered that some of their visas had expired about three months earlier. Yet, there were still individuals operating there without passports,” he said.

Kaltungo vowed that those behind the illegal refinery would be identified and brought to justice.

Also speaking, the Director of the EFCC’s Department of Proceeds of Crime Management, Mr Gbolahan Latona, condemned the activities, warning that illegal operations of this nature undermine legitimate investments in Nigeria’s petroleum industry.

“Imagine allowing saboteurs like these to operate freely and undermine the efforts of legitimate investors like Dangote Refinery. Ultimately, it is Nigerians who will suffer,” Latona said.

The discovery comes amid renewed efforts by regulatory and law enforcement agencies to clamp down on illegal industrial operations, economic sabotage and activities capable of undermining investments in Nigeria’s oil and gas sector.

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EXEED Sets Sights on Nigeria’s Luxury Car Market, Showcases Technology, Design Vision

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EXEED Sets Sight on Nigeria’s Luxury Car Market, Showcases Technology, Design Vision

 

Versat Automobile Limited, the Nigerian representative of EXEED, is stepping up efforts to introduce the premium automotive brand to the country, offering prospective customers a closer look at its technology, design philosophy and vision for the future of mobility.

The move signals a new phase in EXEED’s Nigerian market entry, as the company seeks to establish its identity in an increasingly competitive premium vehicle segment where technology, performance, comfort and ownership experience are becoming important considerations for buyers.

Following its initial introduction to Nigeria in August, Versat Automobile is advancing the brand’s pre-launch activities by highlighting the philosophy and engineering thinking behind EXEED, a premium automotive marque within the Chery Automobile family.

Drawing on Chery’s extensive investment in automotive research and development, EXEED’s technology proposition covers vehicle architecture, powertrain engineering, intelligent cabin systems and connected driving technology.

However, the brand says its approach to innovation goes beyond simply adding more technological features to vehicles. Rather, it focuses on integrating intelligence, convenience, connectivity and performance to improve the overall driving experience and respond to the expectations of modern motorists.

Design is another major pillar of EXEED’s identity, with its vehicles combining distinctive exterior styling, lighting, detailing and cabin architecture with functionality and everyday usability.

The company’s approach reflects an evolving definition of premium mobility, where luxury is no longer determined solely by a vehicle’s appearance but also by how it feels, functions and interacts with occupants.

At the heart of the brand is its philosophy, Born for More, which is reinforced by what it describes as its Spirit of Exploration.

The philosophy is built around challenging conventions, looking beyond familiar boundaries and pursuing new possibilities. It targets customers who seek experiences beyond the ordinary and view mobility as more than simply moving from one destination to another.

Versat Automobile believes this positioning could resonate with Nigeria’s evolving premium automotive market, where buyers are increasingly considering technology, contemporary design, performance, comfort and the overall ownership experience when making purchasing decisions.

Christopher Irumudomon, General Manager, Sales, Versat Automobile Limited, said the introduction of EXEED was about presenting Nigerians with a different perspective on premium mobility rather than merely adding another vehicle brand to the market.

“The introduction of EXEED is about more than bringing another automotive brand to Nigeria. It is about introducing a different perspective on premium mobility, one that brings together technology, design, performance and the freedom to explore.

“EXEED has a distinctive philosophy and a clear vision for what it wants to represent, and we are excited to give Nigerians a closer look at the brand and what it has to offer,” he said.

As part of its broader engagement with the global technology and mobility ecosystem, the Versat team is also scheduled to participate in the International User Summit in China in October.

The visit is expected to provide opportunities for further engagement with Aimoga, a high-end robotics brand, highlighting the growing intersection between technological innovation, robotics and future mobility.

The engagement underscores the broader technological direction that EXEED seeks to associate with its premium brand identity.

Versat Automobile said further details about EXEED, including its products, technology and design philosophy, would be unveiled as the Nigerian pre-launch programme progresses.

Established in 2024, Versat Automobile Limited made its Nigerian market debut in 2026 with C&C Trucks and is building its portfolio around globally positioned automotive brands.

The company says its operations are guided by a commitment to performance, durability, quality, reliability and customer support, with EXEED representing its entry into the premium passenger vehicle segment.

For Nigeria’s automotive market, the forthcoming arrival of EXEED introduces another contender into the premium mobility conversation, with its eventual success likely to depend not only on the appeal of its technology and design but also on how effectively its Nigerian representative delivers on customer expectations.

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