Dangote Refinery Shakes Fuel Market as Private Depots Empty Out Amid Direct Petrol Sales
Story: written by Okafor Joseph September 18,2025
Private depots in Lagos and nearby states were unusually quiet on Monday after the Dangote Petroleum Refinery began direct distribution of petrol to marketers, a shift that is rapidly transforming Nigeria’s downstream oil market.
Market checks revealed that many depot operators carried out only minimal transactions, as marketers increasingly turned their attention to the refinery’s direct sales.
Olatide Jeremiah, CEO of Petroleumprice.ng, described the development as a major disruption in the sector.
“The downstream market is in transition, with Dangote now setting the pace. The rollout of 1,000 trucks on Monday has rattled depot owners and retailers, resulting in lower patronage,” he said.
Jeremiah also highlighted the unusual trend of global crude oil prices rising while local depot prices fall, crediting the refinery for reshaping supply and stabilising pump rates. “This revolution will push the industry toward efficiency and greater transparency,” he added.
A year of impact
Speaking at the refinery’s one-year anniversary of petrol production, Aliko Dangote, President and CEO of Dangote Petroleum Refinery, emphasised the project’s role in boosting Nigeria’s energy independence.
“Nigerians have endured fuel queues since 1975, but today we are seeing a new era. The refinery has significantly improved energy security and reduced dependence on imports,” Dangote said.
He recalled the skepticism surrounding the project, noting that many experts and policymakers doubted its viability. “People thought we were taking food from their tables, but in reality, we’ve strengthened Nigeria and made Africa proud,” he explained.
Dangote admitted that the risks were enormous, with lenders ready to seize his assets if the project failed. “The decision wasn’t easy, but we believed in Nigeria and in Africa’s potential,” he stressed.
Reshaping Africa’s fuel landscape
Before the refinery’s operations began, only two African nations had reduced reliance on imported petrol—but both have since resumed imports, highlighting the continent’s vulnerability. Analysts argue that the success of the 650,000 barrels-per-day refinery not only transforms Nigeria’s supply chain but also positions Africa to stabilise energy costs and enhance regional self-sufficiency.
With direct supply now underway and depot activity slowing, experts say the refinery has firmly established itself as the dominant force in Nigeria’s downstream petroleum sector
