The Nigerian system of corruption and scandals may have found its way to deprive Nigerians of the much celebrated and expected benefits of owning the largest refinery in the world, the Dangote Petroleum Refinery and Petrochemicals, as the company suspended its discounted fuel supply scheme following revelations of widespread abuse by some of its strategic partners and affiliate marketers.
An internal investigation by the refinery uncovered that certain marketers granted access to subsidised petroleum products were diverting them to unregistered third-party dealers. This breach of protocol allowed them to profit from price differentials without bearing the full costs of logistics, retail operations, or compliance.
The discount scheme was initially introduced to help registered marketers maintain competitive profit margins and ensure stable nationwide availability of Dangote’s products. However, the refinery discovered that many of these marketers were selling their Authority To Collect (ATC) loading tickets to non-affiliated dealers, who then picked up products directly from the Dangote tarmac.
As a result, refined petroleum products intended for retail stations were resold at higher prices in open markets, undermining the scheme’s objectives and disrupting market balance.
In a letter dated July 13, 2025, signed by the Group Executive Director of Commercial Operations, Fatima Dangote, and addressed to all strategic partners, the company announced the immediate suspension of the programme.
The letter, titled “Suspension of the Strategic Partner Discounted Price,” stated that despite several engagements with erring partners, abuse of the scheme had reached an unsustainable level.
“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. While we have engaged Partners severally on this, it has become evident that this has become an area of grave concern to DPRP as it affects the sustainability of our gantry operations,” the letter read.
To prevent further abuse, the discounted pricing arrangement has been suspended with effect from July 13. However, the refinery granted limited concessions: outstanding Product Release Notes (PRNs) issued at the discounted rate will remain valid for loading, and any partner who completed payment before the suspension date will still receive products at the agreed price.
Additionally, the company instructed that retail stations must continue to maintain the recommended pump prices to ensure market stability and protect consumers from price manipulation.
Despite the crackdown, the company clarified that the strategic partnership scheme remains in place, but will undergo a complete restructuring. It also hinted at the introduction of new reward and incentive structures for compliant partners, which will be announced later.
Industry analyst Olatide Jeremiah confirmed the refinery’s findings, stating that some affiliate marketers had been diverting both prepaid and credit-based petroleum allocations. He explained that Dangote offers discounted rates to registered marketers—sometimes as low as ₦815 per litre compared to a public price of ₦825—to enhance retail profitability. Instead of selling through official outlets, marketers resell these products at around ₦819 per litre, bypassing costs and earning instant profits.
Jeremiah also disclosed that some marketers exploited the credit supply model, where Dangote releases more volume than was initially paid for to boost national coverage, only for the products to be diverted and sold for profit.
“The information is true,” he said. “They sell below the official gantry price to non-affiliated marketers and make a profit, defeating the purpose of the scheme. That’s why the company is stopping it for now.”
Recent price monitoring by petroleumprice.ng showed that non-affiliated marketers, who do not benefit from Dangote’s subsidy, were still able to match the prices of affiliated dealers, further pointing to product diversion. Last week, several private depots adjusted their ex-depot prices to ₦820 per litre, down from ₦835 at the beginning of the week, aligning with Dangote’s pricing strategy.
Although the refinery did not publicly name the defaulting marketers, a review of its known partners includes MRS Oil, Heyden Petroleum, Ardova Plc, Hyde Energy, Optima Energy, and Techno Oil. Others include TotalEnergies, Garima Petroleum, Sobaz Nigeria Ltd, NU Synergy Ltd, Sunbeth Energies, Virgin Forest Energy, Sixxco Oil Ltd, and Soroman Nigeria Ltd.
When contacted for comment, the Group Head of Corporate Communications at Dangote Group, Anthony Chiejina, said the company would issue an official response soon, emphasizing that the current development is not a conflict but a necessary move to safeguard the integrity of the company’s operations.
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