Dangote Petroleum Refinery is considering stopping the sale of petrol to major marketers that continue to import Premium Motor Spirit into Nigeria, escalating tensions over the growing presence of imported fuel in a market increasingly supplied by domestic refineries.
The proposed restriction could begin as early as this week, although consultations are continuing and the policy has not yet taken effect. The move is reportedly driven partly by concerns that some marketers are blending imported petrol with PMS purchased from the Dangote refinery before selling the product to consumers.
Sources familiar with the refinery’s position said such blending could make it difficult to determine the origin and quality of fuel reaching filling stations. Dangote is also concerned that any quality problem involving blended products could subsequently be associated with petrol produced at its Lekki facility.
A senior refinery official, speaking without authorisation to be named, questioned why the company should invest heavily in producing petroleum products domestically only for those products to be mixed with imported fuel whose quality, according to the refinery, may not be as readily traceable. The claims concerning the quality of imported PMS and alleged blending have not been independently established.
The development comes only days after Dangote publicly complained about the increasing volume of petrol imports entering Nigeria despite expanding domestic refining capacity. According to market data cited by the refinery, imported PMS represented approximately 43 per cent of petrol supplied to the Nigerian market in July 2026.
Dangote said the volume of imports had made it more difficult to forecast domestic demand and determine how much petrol should be produced and held in storage for Nigerian consumers. The refinery maintained that it had sufficient inventories and reserved volumes to meet domestic requirements, while warning that excess stock that could not be absorbed locally might instead be exported.
Imports Put Domestic Refining Under Pressure
The dispute is emerging at a significant moment for Nigeria’s downstream petroleum industry. For decades, the country depended heavily on imported refined products despite being Africa’s largest crude oil producer, but the commencement and expansion of production at Dangote has substantially altered that structure.
The refinery is now operating around a production level of 700,000 barrels per day, according to recent reporting, and has become a major supplier to both Nigerian and international markets. Its expanding output has also contributed significantly to the growth of Nigeria’s petroleum-product exports.
The U.S. Energy Information Administration recently reported that Nigeria’s seaborne petroleum-product exports averaged about 561,000 barrels per day during the second quarter of 2026. That compares with an annual average of about 79,000 barrels per day in 2023, before the Dangote refinery became a major exporter.
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The shift means the argument over petrol imports is no longer simply about whether Nigeria can obtain sufficient fuel. It increasingly centres on how a deregulated market should balance competition, domestic refining, imports, product quality and energy security.
If Dangote proceeds with the proposed restriction, marketers that currently combine purchases from the refinery with imported PMS could be forced to choose between the two supply channels.
Such a decision could strengthen the refinery’s control over the distribution of its own products, but it could also reopen wider questions about competition in Nigeria’s downstream sector. Petrol imports remain permissible under the existing deregulated framework, making any refusal to supply importing marketers principally a commercial decision unless regulators intervene.
No blanket ban on petrol imports has been announced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in connection with the latest development.
For consumers, the immediate effect will depend on whether the proposed restriction is implemented, how many marketers are affected and whether alternative supplies remain readily available. Any significant disruption in the supply chain could affect distribution patterns and, potentially, pump prices.
