South Africa, seven other countries line up to begin purchase of fuel from Dangote Refinery – Crime Channels
South Africa, seven other countries line up to begin purchase of fuel from Dangote Refinery
The Dangote Refinery and Petrochemical is on the verge of expanding its reach, with plans to begin exporting fuel to South Africa, Angola, and Namibia in the near future.
Sources close to the refinery’s operations, who spoke to The Punch on Friday, revealed that negotiations are at an advanced stage with these countries to commence fuel exports.
Additionally, four other African nations—Niger, Chad, Burkina Faso, and the Central African Republic—have entered into discussions to potentially source fuel from the refinery.
As talks with these countries progress, more nations are expected to express interest in tapping into Dangote’s massive 650,000-barrel-per-day refinery.
Ghana, in particular, has recently signaled interest in purchasing petrol from the $20 billion Lekki-based facility.
The Chairman of Ghana’s National Petroleum Authority, Mustapha Abdul-Hamid, confirmed that the agreement with Dangote would significantly reduce Ghana’s dependency on costly fuel imports from Europe, which currently total around $400 million each month.
One high-ranking source revealed to The Punch that discussions with Ghana, Angola, Namibia, and South Africa are “at an advanced stage,” while talks with Niger, Chad, Burkina Faso, and the Central African Republic are still in the early phases.
The source further indicated that other countries could join the negotiations in the coming months.
Despite the refinery’s capacity to meet domestic demand, local fuel marketers have voiced opposition to purchasing from Dangote, claiming that the prices are too high.
The source, however, dismissed these concerns as part of a hidden agenda, suggesting that by early 2025, their intentions would be exposed.
“Dangote Refinery remains the country’s best hope for a sustainable petrol supply,” the source stated, emphasizing the refinery’s ability to serve both domestic and regional markets.
In the meantime, Nigerian fuel marketers have opted to continue importing fuel from abroad.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) announced last week that they would proceed with imports, arguing that the cost of fuel from Dangote’s refinery is too high for local consumers.
They are seeking approval from the Central Bank of Nigeria (CBN) for access to foreign exchange, as well as permits from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure regulatory compliance and maintain fuel quality standards.
The marketers assert that importing more affordable petrol could provide much-needed relief to Nigerians grappling with recent price hikes following the removal of the fuel subsidy. However, their move hinges on securing the necessary financial and regulatory approvals.
