By Mary Izuaka

 

The Dangote Petroleum Refinery and Petrochemicals is considering restricting sales of Premium Motor Spirit (PMS) to major marketers that continue to import petrol, citing concerns over product quality, brand integrity and market transparency.

The proposed restriction could take effect as early as this week, pending further consultations and any last-minute intervention by regulators and industry stakeholders, sources close to the refinery said on Sunday.

Sources familiar with the refinery’s position said the immediate concern relates to the fact that some marketers are blending substandard imported PMS with products purchased from Dangote Refinery before distributing the blended product to the market.

The refinery is concerned that such practices could make it difficult to distinguish between products supplied directly by the refinery and products subsequently blended or handled by third parties.

“It is difficult to understand why we would invest heavily in producing high-quality petroleum products for Nigerians, only for those products to be mixed with imported products of uncertain quality and the resulting product to be associated with the refinery,” a source said.

The quality and traceability problem

According to officials at the 700,000 barrels-per-day facility in Lekki, once Dangote PMS is blended with imported cargoes of unknown specification, it becomes almost impossible to trace responsibility if consumers experience engine damage, irregular combustion, or other performance issues.

The refinery is also worried about the absence of a standard, independent laboratory and robust quality-control infrastructure for imported products.

It argues that without the capacity to independently verify and certify the specifications of PMS entering Nigeria, the market remains exposed to products that may not meet the same standards Dangote has set.

Industry players note that the refinery’s jet fuel and diesel already carry certification for export to the US and Europe, and the company does not want the PMS brand to be dragged into controversy by downstream blending practices it cannot control.

Nigeria’s shift to domestic refining

The move comes as Nigeria’s downstream sector transitions away from decades of import dependence. With Dangote Refinery now operating at scale, the country has seen a sharp rise in domestic supply and in exports.

Data from the United States Energy Information Administration recently identified the Lekki-based plant as a key driver of Nigeria’s growing footprint in global product trade.

Nigeria’s seaborne petroleum product exports averaged 561,000 barrels per day in the second quarter of 2026, up from an annual average of just 79,000 barrels per day in 2023.

Dangote’s jet fuel has become particularly prominent. The refinery has emerged as Europe’s largest external supplier of jet fuel for consecutive months, overtaking traditional suppliers from the United States and the Middle East, and its cargoes are also finding buyers in the US market.

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What the restriction could look like

Under the proposal being weighed, marketers that continue to bring in imported petrol would be deprioritised or barred from lifting PMS directly from Dangote, while those sourcing wholly from the refinery would retain access.

Last week, the management of Dangote Refinery said the continued issuance of petroleum product import licences is forcing it to redirect more output to export markets.

The refinery expressed concern that large volumes of imported fuel entering the market were creating uncertainty in demand forecasting and inventory management, making it commercially difficult to sustain excess stockpiles meant for local consumption.

The refinery noted that while it remains fully committed to supporting Nigeria’s energy security and ensuring uninterrupted fuel availability across the country, the volume of imported PMS entering the market has created uncertainty in domestic demand planning and inventory management.