In a recent meeting, Aliko Dangote, Nigeria’s billionaire industrialist, allegedly misled President Bola Ahmed Tinubu regarding his fuel storage capacity, claiming to have 500 million litres on hand. Sources familiar with the discussions revealed that Dangote is seeking to influence government policies to benefit his fuel business.
Dangote has set the price of fuel from his refinery at ₦990 per litre, with a minimum order of 1 million litres, which must be paid in advance. Delays in loading fuel are common, with bulk purchases needing at least 15,000 metric tonnes, or about 20 million litres, at a price of ₦971 per litre.
According to the sources, private depot owners cannot compete with Dangote’s pricing. The Independent Petroleum Marketers Association of Nigeria (IPMAN) has stated that they cannot afford to buy fuel at Dangote’s rate, making it difficult for them to stay in business.
Dangote is reportedly pushing President Tinubu to compel the Nigerian National Petroleum Company (NNPC) to purchase fuel from his refinery, but the president emphasized that NNPC would only make purchases if prices are reasonable. President Tinubu pointed out that Dangote should treat NNPC similarly to other oil companies, such as Total and 11 PLC.
During the meeting, Dangote expressed uncertainty about the current naira-to-dollar exchange rate and mentioned he was waiting for guidance from NNPC regarding pricing. However, sources indicated that NNPC is hesitant to buy from Dangote, fearing it would raise consumer prices.
While Dangote appears to aim for a fuel subsidy and a monopoly, President Tinubu has removed the subsidy, leading to a more competitive market environment. Discussions also revealed that Dangote wanted the president to set the exchange rate, but this request was denied.
Representatives from the African Export–Import Bank (Afreximbank) were present at the meeting, as the bank is looking to protect its investment in Dangote’s refinery. There are concerns that pressure is mounting on NNPC to provide foreign exchange discounts and subsidies to Dangote, despite their resistance.
If NNPC continues to refuse these requests, there are plans to replace its management. This pressure highlights the complex dynamics between business interests and government policy in Nigeria’s fuel market.
