Dangote accused of misleading Tinubu on fuel storage amid monopoly push

Aliko Dangote allegedly misled President Tinubu on fuel storage, sparking concerns over potential monopoly and subsidy requests.

[dropcap]S[/dropcap]ahara Reporters has disclosed that Aliko Dangote, the Nigerian billionaire and founder of Dangote Industries, allegedly misled President Bola Ahmed Tinubu on his fuel storage capacity, claiming he had 500 million litres of fuel ready for distribution.

Also read: Nigerian billionaires Aliko Dangote and Abdulsamad Rabiu recently lost a combined $5.85 billion

The revelation has stirred debate over Dangote’s pricing strategy and intentions in the Nigerian petroleum market, sparking concerns about a potential monopoly in fuel distribution.

During recent discussions with the President, Dangote reportedly stated he had significant fuel reserves at his Lagos refinery, setting his price at ₦990 per litre, with a minimum purchase of 1 million litres and requiring advance payment.

However, industry sources question this claim, stating that delays in loading are frequent and that purchasing via tanker vessels requires a minimum order of 15,000 metric tonnes (about 20 million litres) at ₦971 per litre.

Additional port and unloading fees bring the total cost to around ₦1,031 per litre, making it challenging for private depot owners to participate in the market.

A source revealed, “No private depot can compete at such high rates. Even Femi Otedola has suggested private depots consider selling off their facilities as the current situation is unsustainable.”

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has also been affected, unable to meet the advance cost requirement of ₦990 million for a minimum purchase, as required by Dangote’s terms.

Reports suggest that Dangote aims to sell primarily to the Nigerian National Petroleum Company (NNPC) Limited, expecting them to distribute fuel to other operators.

Yet, President Tinubu reportedly clarified that NNPC would only proceed if pricing aligns with market standards and stressed that Dangote should treat NNPC like other corporations, such as Total and 11 PLC.

“Dangote seems focused on securing a subsidy and dominance in the market, despite Tinubu’s removal of fuel subsidies earlier this year,” the source added.

As the meeting progressed, Dangote allegedly requested that the President set a fixed naira-to-dollar exchange rate for his refinery operations.

President Tinubu declined, emphasising market-driven operations. Sources suggest that representatives from the African Export–Import Bank (Afreximbank), including its President, Dr Benedict Okey Oramah, were also present at the meeting, given Afreximbank’s financial ties with the Dangote Refinery.

Dr Oramah, due to retire next year, is reportedly working alongside Zacchs Adedeji, Head of the Federal Inland Revenue Service (FIRS), to pressure NNPC into offering Dangote foreign exchange subsidies—a move NNPC management is currently resisting.

Sources close to the situation warn that if NNPC’s management continues to resist these subsidies, efforts to push for new leadership within NNPC could be imminent, with Engineer Rabiu Suleiman emerging as a potential successor.

Also read: Dangote Refinery slashes aviation fuel imports as domestic supply surges

Dangote’s alleged fuel storage claim has ignited public concern about a monopolistic environment in Nigeria’s oil industry, raising questions about future fuel prices and the sustainability of market competition.