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Dangote Petroleum Refinery, owned by Africa’s richest man Aliko Dangote, has suspended self-collection gantry sales of petroleum products at its facility. The company said the step is meant to encourage more marketers to adopt its free delivery scheme and to prevent sales to unregistered buyers, whether they source directly from the depot or through intermediaries.
Dangote Refinery halts self-collection transactions
The refinery said the policy took effect on Sept. 18 and was described as an operational change aimed at improving efficiency. Marketers were told to stop making payments tied to self-collection, with the company warning that transactions made after the deadline would not be honored.
In a notice to its partners, the management wrote: “Dangote Petroleum Refinery and Petrochemicals FZE has placed all self-collection gantry sales on hold until further notice. All payments related to active PFIs for self-collection are also placed on hold. Please note that any payment made after this date will not be honored.” The company stressed that its Free Delivery Scheme remains open to both existing and new customers.
“We encourage all customers to register for the DPRP Free Delivery Scheme, which remains fully operational and offers a direct delivery experience to your station,” the communication added. The refinery also apologized for the inconvenience, saying the decision was necessary to streamline operations.
Dangote Refinery, unions in stand-off
The announcement comes at a time of rising tension between the refinery, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN). NUPENG has accused Dangote of blocking unionization of its truck drivers despite a government-brokered deal while DAPPMAN argues the delivery scheme forces marketers to depend on the refinery’s fleet at commercial rates.
Dangote Petroleum Refinery has defended its approach, saying the model is meant to stabilize fuel supply, reduce diversion and cut costs in the downstream market. The refinery claims some marketers are lobbying for subsidies and resisting reforms that could benefit consumers over time. The dispute has fueled concerns over pricing, labor rights, and competition in fuel sector.
The move follows the refinery’s rollout of petrol deliveries to 11 states beginning Sept. 15 at an ex-gantry price of N820 ($0.546) per liter, with distribution offered free to registered stations. Recommended pump prices were set at N841 ($0.56) per liter for Lagos, Ogun, Oyo, Ondo, Osun, and Ekiti, and N851 ($0.567) for Abuja, Delta, Rivers, Edo, and Kwara.
Inside Dangote’s $20 billion refinery push
The $20 billion Lagos-based plant, Africa’s largest refinery, is gradually expanding its reach after months of delays. To back its nationwide delivery promise, the company is deploying a fleet of 4,000 compressed natural gas trucks, with the capacity to move up to 65 million liters daily. Dangote has said the investment could save Nigeria more than N1.7 trillion ($1.13 billion) annually in fuel costs while creating 15,000 jobs.
This lands in the middle of a turbulent rollout. Retail owners, through the Petroleum Products Retail Outlet Owners Association of Nigeria, have warned that the scheme could distort competition if not carefully managed. For now, the refinery is betting that centralizing deliveries will bring order to a sector long plagued by inefficiencies, leakages, and price disputes.
