THE Dangote Petroleum Refinery and Petrochemicals has suspended its strategic discounted fuel supply programme after uncovering a widespread scheme by affiliate marketers and strategic partners to divert subsidised fuel meant for the Nigerian retail market, leading to massive revenue leakage and distortion of market prices.
In a letter dated July 13, 2025, signed by Fatima Dangote, Group Executive Director of Commercial Operations, and addressed to all participating partners, the refinery announced an immediate halt to its discounted pricing scheme, citing repeated abuses and fraudulent exploitation of the initiative by some licensed partners.
The suspension comes after internal investigations revealed that several marketers, who were granted discounted access to Dangote’s Premium Motor Spirit (PMS) under the affiliate programme, had been reselling their allocation at inflated prices to unregistered, third-party marketers, rather than distributing the products through their own filling stations as agreed.
The discount scheme, introduced earlier this year, aimed to cushion registered retail partners against volatile pricing pressures from imported fuel and improve accessibility to affordable fuel across Nigeria.
However, what began as a market support mechanism quickly became the target of abuse and profiteering.
According to the letter obtained by reporters, the refinery expressed serious concern that some partners were selling “Authority to Collect” (ATC) documents used to lift products from the refinery to unrelated marketers.
These third-party marketers, in turn, bypassed standard distribution channels, offloading the fuel at market prices without incurring the costs of retail operations, staff wages, or station maintenance.
“This undermines the spirit of the programme,” the letter stated.
“It threatens the sustainability of our operations and compromises the availability of affordable petroleum products to Nigerian consumers.”
In some cases, products were being sold directly at the refinery’s tarmac, an area typically reserved for loading and dispatch—at prices below the official gantry rate.
Dangote Refinery deemed this practice as both unethical and economically damaging, leading to the decision to suspend all discounts indefinitely while the scheme undergoes restructuring.
Despite the abrupt suspension, the company granted certain concessions.
All partners who had completed payment processes or received Product Release Notes (PRNs) at the discounted rate before July 13 will still be allowed to lift products at the agreed prices. However, no new discounts will be offered until a revised system is introduced.
“All existing PRNs at partner prices will remain valid for loading,” the company said, adding that recommended retail pump prices must still be maintained to avoid further market distortion.
Dangote’s management reiterated that while the current structure is on hold, the strategic partnership model will not be scrapped entirely.
The company is exploring alternative incentive-based models that align with long-term operational sustainability and market fairness.
Industry analyst and oil trader, AbdulHameed Junaid confirmed the refinery’s findings, noting that some affiliate marketers had exploited their privileged access for quick profits instead of honouring their distribution obligations.
“They’d get discounted products at N815 and flip them to other marketers at around N819, bypassing the real work of selling through filling stations,” he explained.
“They avoid expenses and still make a N4 per litre margin. The final marketers then sell at N825, still meeting market expectations.”
Junaid also said some marketers were abusing a volume-backed credit agreement, under which they received excess stock to ensure national distribution.
Instead of returning proceeds or circulating fuel as agreed, the recipients resold the products and defaulted on repayment.
Recent data gathered from petroleumprice.ng shows that non-affiliated marketers, who depend on imports continue to sell at nearly identical prices to Dangote partners, nullifying the original intent of the discount scheme.
At least five privately-owned depots had adjusted their ex-depot prices to match Dangote’s price drop to around N820 per litre down from N835 earlier in the week.
The refinery did not name the erring marketers. However, Dangote’s list of registered partners includes notable companies such as:
MRS Oil, Heyden Petroleum, Ardova Plc, Hyde Energy, Optima Energy, Techno Oil, TotalEnergies, Garima Petroleum, Sunbeth Energies,Sobaz Nigeria Ltd, Virgin Forest Energy, Sixxco Oil Ltd, NU Synergy Ltd and Soroman Nigeria Ltd.
When contacted for an official response, Dangote Group’s Head of Corporate Communications, Anthony Chiejina, said the company is still reviewing the situation and will issue a comprehensive statement soon.
He added that the matter does not constitute a dispute with partners, but rather a policy reset to protect long-term operational goals.
The refinery has promised a restructured partner reward scheme that will replace the current one.
It remains unclear how soon the new system will be implemented, but insiders suggest that any future arrangement will involve tighter compliance tracking, digital verification of ATC transfers, and possible sanctions for defaulting marketers.
Until then, Dangote Petroleum Refinery has resumed full price sales, putting strategic partners and market players on alert and potentially signalling a more disciplined phase in Nigeria’s downstream petroleum operations.