In a move that has sent ripples through Nigeria’s fuel distribution network, Dangote Petroleum Refinery has announced the suspension of its discounted fuel supply scheme, citing rampant abuse by affiliate marketers who exploited the system for personal gain. The decision, effective July 13, 2025, follows a troubling pattern of product diversion and unauthorized resales, which Dangote says undermined both the integrity and purpose of the subsidy initiative.
The suspension was confirmed in an internal circular signed by Fatima Dangote, Group Executive Director of Commercial Operations. The company expressed deep concern over revelations that certain strategic partners were bypassing the refinery’s regulated retail framework, offloading subsidised products to unregistered third-party marketers at inflated market prices.
A Scheme Designed for Fair Access, Undermined by Greed
The discount initiative was originally launched to ensure the equitable distribution of clean and affordable petroleum products across Nigeria. Through strategic partnerships with reputable fuel marketers, Dangote aimed to provide a price cushion for consumers amid volatile energy costs.
But rather than honour their role in the system, some partners used their Authority To Collect (ATC) tickets—intended for use at approved service stations—to enable external, often unlicensed, marketers to lift products directly from the refinery. These third parties, unburdened by retail logistics, compliance duties, or station upkeep, resold the fuel at regular or even inflated pump prices, effectively pocketing the margins meant for downstream infrastructure and public benefit.
This manipulation of the scheme created a parallel market that distorted nationwide pricing benchmarks and threatened the sustainability of Dangote’s operations.
“Unprecedented Complaints” and a Breaking Point
Despite several warnings and attempts at dialogue, the abuse intensified. In the circular titled “Suspension of the Strategic Partner Discounted Price”, Dangote stated:
“Over the last few months, we’ve received unprecedented complaints about strategic partners selling ATCs at rates below the prevailing PMS gantry price. These practices pose a serious risk to the long-term viability of our gantry operations.”
Unable to contain the breach, the refinery decided to freeze the discounted pricing arrangement, stating that a restructuring of the scheme is underway to prevent further exploitation.
Concessions for Compliant Partners
While the suspension is firm, Dangote has made several concessions to cushion the transition for legitimate partners. All Product Release Notes (PRNs) previously issued at the discounted rate will still be honoured. Similarly, any partner that had already completed payment at the discounted rate prior to July 13 will be allowed to lift their allocated volumes.
The refinery also stressed that retail outlets must continue to comply with the official pump price, warning that failure to do so could further disrupt market pricing.
“Recommended pump prices must be strictly adhered to in order to avoid additional distortion in the downstream space,” the notice read.
The Strategic Partner Model Stays—But With Reforms
Despite the breach, the Dangote Group has clarified that the strategic partnership framework remains intact and will not be scrapped entirely. Instead, the company is working on alternative incentive structures to replace the now-abused discount scheme. Details of this restructured system will be announced in due course, with the aim of rewarding transparent and compliant partners. “We are judiciously exploring other incentive and reward options to recognize our partners who operate with integrity,” the refinery noted.
Market Impact: Prices See Slight Adjustments
Following the announcement, industry observers reported that some independent depot operators began aligning their pricing models with Dangote’s prior rates, leading to a minor adjustment in pump prices. Petrol at some depots dropped to an average of ₦820 per litre, down slightly from ₦835 earlier in the week—a reflection of market responsiveness to Dangote’s lead.
Marketers Under Scrutiny—But No Names Publicly Released
Though the company refrained from officially naming defaulting marketers, sources suggest that current strategic partners include several prominent oil and gas firms such as MRS Oil, TotalEnergies, Heyden Petroleum, Ardova Plc, Hyde Energy, Optima Energy, Techno Oil, and Sobaz Nigeria Ltd.
The scale and speed of the manipulation have shocked industry insiders, raising questions about accountability within Nigeria’s downstream sector.
A Message to the Industry: Compliance or Consequences
The suspension sends a strong message to the energy sector: corporate responsibility and transparency will no longer be optional. By halting a popular subsidy scheme due to misuse, Dangote has drawn a clear line between partnership and profiteering.
Whether the new reforms will be able to restore trust and integrity in the distribution chain remains to be seen. But for now, the refinery is focused on redesigning a system that won’t be so easily hijacked—one that continues to serve the Nigerian public without falling prey to exploitation from within.
