Business
Dangote Refinery Faces Crude Supply Challenges Amid Allegations Against IOCs and Regulators

In recent weeks, a significant topic of discussion in Nigeria has been the allegations made by Dangote Refinery against International Oil Companies (IOCs) for allegedly obstructing its operations by refusing to sell crude oil directly to it.
According to a statement issued in July, and subsequently reiterated by Alhaji Aliko Dangote himself, the refinery claims that IOCs are favouring Asian countries or their foreign subsidiaries over Nigerian buyers, in defiance of directives from Nigeria’s upstream regulatory body, the National Upstream Regulatory Commission (NUPRC).
Dangote Refinery has asserted that this practice is likely to result in increased prices for its products, as the trading arms are offering crude at prices $2 to $4 per barrel above the official NUPRC rates.
The refinery recently reported that when they attempted to purchase crude for August, international trading arms informed them that their Nigerian crude was included in a tender by Pertamina, the Indonesian National Oil Company, necessitating a wait to determine available quantities.
In addition to these allegations against the IOCs, Dangote Refinery has accused oil marketers of engaging in unethical practices, such as importing adulterated diesel.
This has led to a surge of patriotic sentiment among Nigerians, who have rallied behind Dangote Refinery, accusing both the Nigerian government and NNPC Limited of undermining a Nigerian-owned business in the oil and gas sector.
However, is the Federal Government truly sabotaging Dangote’s business? Are the claims that the government is conspiring against him accurate, or are they driven more by sentiment than fact? The reality appears to be more nuanced than the allegations suggest.
It is crucial to acknowledge that Alhaji Aliko Dangote has arguably received more governmental support than any other Nigerian businessman.
Since 1999, various administrations have granted him numerous advantages, including waivers that have significantly diminished competition in sectors like food, confectionery, and cement. Competitors such as Ibeto Cement and Lafarge have seen their market shares shrink due to these advantages.
Many argue that without such governmental support, Dangote might not have achieved his billionaire status.
Addressing the specific claims made by Dangote Refinery, it is important to recognize that the oil and gas sector, like other sectors of the Nigerian economy, has its complexities.
Before the arrival of Dangote Refinery, the downstream petroleum sector had already seen substantial investments from oil marketers, amounting to over N3 trillion.
The entry of the refinery was initially welcomed, with marketers seeing it as a positive development for both Nigerian businesses and the country as a whole.
During a meeting last month, marketers expressed concerns about Dangote’s business model, which involved selling fuel directly through gantry systems and bypassing traditional depots.
Dangote acknowledged these concerns and explained that gantry sales were a temporary measure to clear stock and ensure uninterrupted refining.
However, the marketers noted that this approach could damage infrastructure and was not as efficient as using established depots across various locations.
The marketers also highlighted a price disparity between local and foreign traders, with the latter obtaining Dangote’s products at significantly lower rates.
Although Dangote promised to address these issues, he later continued his sales practices without changes, prompting marketers to import cheaper diesel from abroad.
This move led to a regulatory dispute, with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) initially attempting to block these imports, only for President Bola Tinubu to reverse the decision.
The situation escalated when Dangote accused NMDPRA of licensing the import of substandard diesel, which was contradicted by evidence showing that Dangote himself was producing diesel with high sulphur content.
This controversy revealed deeper issues within the refinery’s operations and led to further tensions with both marketers and regulatory bodies.
Additionally, Dangote’s recent criticism of NNPC Limited, alleging the importation of adulterated fuel, appears to stem from frustration with the broader challenges facing his business.
Historically, Dangote has enjoyed considerable support from the government, as evidenced by the significant backing received during the construction of the refinery.
Former Central Bank Governor Godwin Emefiele even highlighted that the refinery had repaid a substantial portion of its loan before it was fully operational.
With Nigeria’s crude oil production standing at approximately 1.25 million barrels per day, and various forward sale agreements impacting the available supply, Dangote’s expectations for exclusive access to crude oil have proven unrealistic.
The government’s commitments to loan repayments and existing agreements have further complicated the availability of crude oil for Dangote’s refinery.
The refinery’s financial challenges are compounded by its inability to secure favourable payment terms for imported crude and the ongoing cash crunch faced by the government.
This has led to a situation where Dangote’s financial capacity is strained, and his options are limited.
Given these circumstances, one viable option for Dangote might be to consider divesting a portion of his shares in the refinery.
This approach has been successfully employed by other businesses facing similar challenges. For instance, Saudi Arabia’s Aramco went public to address financial difficulties, and Microsoft founder Bill Gates sold a significant portion of his stake in the company to navigate legal and market pressures.
By exploring such a divestment strategy, Dangote could attract additional investment and share the financial burden, allowing the refinery to continue operations despite the current challenges.
This approach would align with practices observed in other successful businesses and offer a potential solution to the difficulties facing Dangote Refinery.
Business
MRS Increases Petrol Price to N955 Per Litre as Oil Price Goes Up

MRS filling stations, a key partner of Dangote Refinery, has announced a new petrol price hike, raising its pump prices across the country. In a price update shared on its official X page on Saturday, the company revealed that the new rates now range from N925 to N955 per litre, up from the previous N825 to N895 range.
This means petrol will now sell for N925 in Lagos, N935 in the South-west, N955 in the North-west and South-east, N945 in the North-central, and N955 in the North-east. For Lagos and Abuja, motorists will now pay N925 and N945 per litre at MRS stations, an increase from N875 and N895 respectively.
Meanwhile, NNPC retail stations have kept their pump prices unchanged at N875 in Lagos and N895 in Abuja as of Saturday evening. The nationwide increase comes amid rising global crude oil prices triggered by tensions in the Middle East, particularly the ongoing Israel-Iran conflict.
Business
Aliko Dangote to Step Down as Dangote Sugar Chairman After 20 Years

Aliko Dangote is stepping down as Chairman of Dangote Sugar Refinery Plc after two decades of steering the company’s growth and transformation. His retirement will officially take effect on June 16, 2025.
The announcement was made in a statement signed by the company’s secretary, Temitope Hassan, who praised Dangote’s contributions since he took over leadership in 2005. Over the years, he has played a major role in shaping Dangote Sugar into a top player in Nigeria’s sugar industry, overseeing its expansion and pushing key reforms in governance and operations.
During his time at the helm, the company rolled out several major projects focused on backward integration, setting up large-scale sugar production facilities in Adamawa, Taraba, and Nasarawa. These projects were designed to boost local output and cut down on the country’s reliance on imported sugar.
As part of a planned succession process, the board has named Arnold Ekpe as the incoming Chairman. Ekpe, who is currently an Independent Non-Executive Director on the board, will take over on the same day Dangote retires.
Ekpe brings decades of leadership experience, having served as Group CEO of Ecobank and held top positions across different industries. The board expressed confidence in his ability to lead the company into its next phase while also thanking Dangote for his outstanding service and dedication throughout the years.
Business
Ecobank Announces $250M Capital Boost at Annual General Meeting in Togo

Ecobank Group is reportedly set to raise up to $250 million through an Additional Tier 1 (AT1) capital offering in order to strengthen the bank’s capital base.
This was revealed during the company’s annual general meeting held in Togo on the 29th of May, 2025. According to the meeting, the bank stated that the conversion price for the shares will be based on the higher of the prevailing exchange rate and the floor price of $0.02 per ordinary share.
The speaker stated “As we cast our eyes into the future and reimagine all possibilities—rising competition from banks, fintechs, and non-bank financial institutions, as well as factors such as geopolitics, regulations, and capital markets—we cannot afford complacency.”
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