Dangote Accused of Misleading President Tinubu on Fuel Storage and Pricing
Sources privy to recent discussions between Aliko Dangote and President Bola Ahmed Tinubu have alleged that Dangote misled the president regarding his fuel storage capacity, claiming to have 500 million litres available. According to reports, Dangote is currently charging ₦990 per litre for loading at his refinery, with a minimum purchase requirement of 1 million litres, all of which must be paid in advance.
The source revealed that delays in loading are common, particularly for purchases made with a vessel, where the minimum order is 15,000 metric tonnes (approximately 20 million litres) priced at ₦971 per litre. The total costs, including chartering a vessel, port fees, and discharge to a private depot, amount to around ₦60 per litre, leading to a landing cost for private depot owners of ₦1,031 per litre. This has made it difficult for private depot owners to compete with Dangote’s pricing.
Femi Otedola reportedly suggested that private depot owners consider selling their depots as scrap, emphasizing the challenges within the market. The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed an inability to purchase fuel due to the high cost of ₦990 million for 1 million litres of PMS.
Sources indicated that Dangote is primarily targeting sales to the Nigerian National Petroleum Company (NNPC) Limited, intending for NNPC to distribute the fuel to other distributors. Dangote allegedly urged President Tinubu to compel NNPC to buy fuel from his refinery; however, the president clarified that NNPC would only make purchases if prices are reasonable, expecting Dangote to treat NNPC similarly to other oil companies like Total and 11 PLC.
During the discussions, when asked about his claimed fuel volume, Dangote expressed uncertainty about the current naira-to-dollar exchange rate and stated he was awaiting guidance from NNPC. This prompted President Tinubu to remark that as a savvy businessman, Dangote should not need to wait for such guidance.
Additionally, sources revealed that Dangote sought to have the foreign exchange rate fixed but was met with a firm “No” from the president. Representatives from the African Export-Import Bank (Afreximbank) were also present at the meeting, reportedly seeking to protect their investment in Dangote Refinery and pressuring NNPC to provide foreign exchange discounts and subsidies.
The current NNPC management is said to be resisting these pressures, leading to discussions about potentially replacing them if they do not cooperate. The situation highlights ongoing tensions between private sector interests and regulatory bodies in Nigeria’s fuel market.
