The Dangote Petroleum Refinery and Petrochemicals has suspended its discounted fuel supply scheme following the uncovering of widespread fraud allegedly perpetrated by some of its affiliate marketers and strategic partners. The scheme, originally designed to make refined petroleum products more affordable and accessible nationwide, was halted on July 13, 2025, after internal investigations revealed large-scale diversion and resale of subsidised products meant for Dangote-registered retail outlets.
The discounted fuel program was meant to help Dangote’s affiliate marketers maintain competitive pricing against imported fuel while ensuring nationwide availability. However, the refinery discovered that several marketers were rerouting products to unregistered third-party marketers using their Authority To Collect (ATC) loading tickets. This allowed them to exploit the price difference for quick profits without bearing the full costs of logistics, station maintenance, or compliance. The diverted products were often sold at market rates significantly higher than the agreed discounted prices, which not only defeated the scheme’s intent but also distorted the downstream fuel market.
According to a letter issued to strategic partners and signed by Fatima Dangote, the Group Executive Director of Commercial Operations, the company has suspended the scheme “due to the unsustainable abuse of the arrangement.” The letter emphasized that while all existing Product Release Notes (PRNs) issued before July 13 would still be honoured, no new PRNs at discounted prices would be issued. Marketers who had completed payments before the suspension date will still receive products at the earlier agreed rates. The letter also instructed all retail stations to continue adhering to recommended pump prices to avoid further market distortions.
Further reports suggest the scale of the fraud could be worth as much as ₦4 billion, with internal employees of the refinery allegedly colluding with affiliate marketers. Industry expert Olatide Jeremiah confirmed that some marketers with access to discounted products were bypassing their retail obligations, instead selling the fuel to other marketers and depot owners at marginally below-market rates to make quick profits. In some cases, the fraud also involved the misuse of extra volumes issued on credit, which were meant to stabilize national supply.
Despite the suspension, the Dangote refinery stressed that it is not scrapping the strategic partnership model entirely. The company is currently working on restructuring the scheme to prevent further abuse and said new incentive or reward mechanisms would be introduced soon. The move comes at a time when several private depots, including those not affiliated with Dangote, have aligned their prices with the refinery’s adjusted ex-depot rates, creating a more level playing field. Prices at many of these depots have recently dropped from ₦835 to around ₦820 per litre.
The refinery has yet to name the defaulting marketers involved officially, but a list of known strategic partners includes major players such as MRS Oil, Ardova Plc, TotalEnergies, Heyden Petroleum, Hyde Energy, Techno Oil, and others. When contacted, the Dangote Group’s head of corporate communications, Anthony Chiejina, declined to give further comment, stating only that the refinery was not in conflict with marketers but is taking necessary steps to protect the integrity of its operations.
As the industry awaits the relaunch of a restructured fuel distribution model, analysts say the case underscores the broader challenges in Nigeria’s downstream sector, particularly in enforcing compliance and transparency in fuel distribution chains.
