The Dangote Petroleum Refinery and Petrochemicals has suspended its discounted fuel supply programme following the uncovering of a widespread racketeering scheme involving some of its affiliate marketers and strategic partners.
Investigations by the refinery revealed that certain marketers granted access to subsidised petroleum products—intended to promote nationwide affordability and ensure stable supply—were allegedly diverting loaded trucks to non-registered third-party marketers. The discovery prompted an immediate suspension of the strategic discount scheme, which took effect on July 13, 2025.
According to internal findings, the erring marketers were exploiting the system by selling their Authority To Collect (ATC) loading tickets to unregistered marketers. This allowed them to offload products directly from the refinery’s tarmac at discounted rates, bypassing logistical and retail overheads, and profiting from the price gap.
“The diverted products were often resold at prevailing market prices, undermining the purpose of the discount scheme and distorting the downstream market,” the refinery stated.
In a letter addressed to all strategic partners and signed by the Group Executive Director, Commercial Operations, Fatima Dangote, the company confirmed the suspension of the scheme, lamenting the adverse impact of such actions on its operations.
The letter, titled “Suspension of the Strategic Partner Discounted Price”, read in part:
“In our drive to ensure the distribution and retail sale of DPRP refined petroleum products across your service stations nationwide, DPRP commenced the strategic partnership scheme with the sole aim of ensuring consumers nationwide have access to affordable and clean petroleum products.
Unfortunately, over the last few months, DPRP has been receiving unprecedented complaints of Strategic Partners selling their ATCs at the refinery (Tarmac) below the prevailing PMS gantry product price… this affects the sustainability of our gantry operations.”
The company stressed that while the scheme is currently suspended, it is undergoing a comprehensive review and restructuring. However, it granted a few concessions: all outstanding Product Release Notes (PRNs) issued at the discounted partner rate remain valid for loading. Likewise, partners who completed payments before the suspension date will still receive products at the agreed discount.
It further directed that retail stations must continue adhering to the recommended pump price to prevent additional market distortion.
“All existing PRNs at partner prices will remain valid for loading. Any partner awaiting PRN for payment made at partner price before the effective date will receive the same,” the letter added.
“Recommended pump prices across the retail stations should still be adhered to.”
Despite the suspension, the Dangote Refinery maintained that the strategic partnership remains important and will not be scrapped. It assured stakeholders that new incentive and reward frameworks are being considered and will be announced in due course.
Commenting on the issue, oil and gas expert Olatide Jeremiah corroborated the findings, noting that some affiliate marketers were diverting products intended for retail outlets to non-affiliated dealers for quick gains.
“The information is true. The affiliated marketers with loading rights at Dangote’s refinery are selling to others at a margin, instead of retailing the products at their own stations,” Jeremiah said.
“For instance, if Dangote offers them fuel at a discounted N815 per litre, they sell to others at N819, avoiding retail-related expenses, and still ensuring profit margins for both parties.”
He also pointed out a parallel abuse involving products issued on credit through a volume-backed repayment scheme designed to enhance distribution. According to him, those products were similarly diverted to external marketers.
Meanwhile, recent market checks by our correspondent showed that non-affiliated marketers—those relying on imported fuel—are selling at nearly the same price as Dangote’s discounted rates. Data from petroleumprice.ng revealed that at least five depots aligned their ex-depot prices with Dangote’s adjustment last week, dropping prices from N835 to an average of N820 per litre.
Though the refinery declined to name the defaulting marketers, checks revealed that its strategic partners include MRS Oil, Heyden Petroleum, Ardova Plc, Hyde Energy, Optima Energy, Techno Oil, TotalEnergies, Garima Petroleum, Sunbeth Energies, Sobaz Nigeria Ltd, Virgin Forest Energy, Sixxco Oil Ltd, NU Synergy Ltd, and Soroman Nigeria Ltd.
When contacted for official comments, the Group Head of Corporate Communications at Dangote Group, Anthony Chiejina, requested additional time, emphasizing that the refinery is not currently in any dispute with its partners.
