Dangote refinery suspends discount scheme after uncovering widespread abuse by some of its strategic partners. The discounted pricing programme, introduced to help affiliate marketers maintain retail supply and stable prices, has now been put on hold due to a diversion racket that allowed unregistered marketers to illegally profit from the scheme.
In an official letter issued on July 13, 2025, and signed by Fatima Dangote, Group Executive Director of Commercial Operations, the refinery explained that some partners were reselling their Authority To Collect (ATC) tickets, documents that permit the lifting of petroleum products, to third-party marketers outside the strategic partnership network. This fraudulent activity enabled these non-affiliates to purchase fuel below the official ex-depot price.
Discount Scheme Abused by Marketers
The Dangote refinery discount scheme was initially introduced to make refined petroleum products more accessible and affordable across the country. Strategic partners were given reduced-price access to products, with the expectation that the benefit would trickle down to consumers at retail pump stations.
Instead, investigations revealed that several partners used the ATCs to bypass official retail supply chains, selling their slots to import-based marketers for a margin, effectively distorting the market.
This allowed third-party dealers to lift products at discount rates and resell at higher prices, undermining the original intent of the initiative and affecting the refinery’s operational sustainability.
Gantry Operations at Risk
The refinery warned that despite multiple engagements and attempts to address the issue, the malpractice had worsened. Selling ATCs below the prevailing ex-gantry price was flagged as a major threat to depot viability and transparency.
“This has become an area of grave concern as it affects the sustainability of our gantry operations,” the statement read.
As a result, Dangote refinery suspended the discount scheme effective July 13. The company stated that it is working on a complete restructuring of the programme to prevent future exploitation.
Concessions for Valid Transactions
To ensure minimal disruption for genuine partners, the refinery announced some concessions:
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All existing Product Release Notes (PRNs) issued at discounted rates will remain valid.
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Partners who completed payment before the suspension date will still be allowed to load at the agreed price.
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Recommended retail pump prices must still be strictly followed to prevent market distortion.
More Changes on the Horizon
Despite the suspension, the Dangote Petroleum Refinery has confirmed that the strategic partnership scheme is not being scrapped altogether. It described the halt as a necessary pause while new incentive and reward structures are developed to support legitimate affiliate marketers.
The refinery noted, “We are judiciously exploring alternative structures that will better align with our operational goals and partner integrity. Further announcements will be made soon.”
Industry Reactions and Market Impact
Oil and gas analyst Olatide Jeremiah confirmed the scheme’s abuse, explaining how marketers made quick profits by selling discounted products to importers rather than supplying them through retail stations.
“Dangote was offering a lower price, around N815 per litre, while public depot prices hovered near N825. Marketers bypassed their obligations and sold ATCs at a margin, making about N4 per litre,” he said.
He also revealed that in some cases, partners sold products obtained on credit through volume-backed repayment agreements, which were originally intended to boost supply availability at the pumps.
Strategic Partner List and Current Pricing
While Dangote did not name specific violators, its known list of strategic partners includes:
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MRS Oil
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Heyden Petroleum
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Ardova Plc
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Hyde Energy
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Optima Energy
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Techno Oil
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TotalEnergies
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Garima Petroleum
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Sunbeth Energies
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Sobaz Nigeria Ltd
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Virgin Forest Energy
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Sixxco Oil Ltd
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NU Synergy Ltd
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Soroman Nigeria Ltd
Recent market checks show that non-affiliated marketers, who don’t benefit from the discount scheme, are now aligning their ex-depot prices with Dangote’s retail pricing, averaging N820 per litre.
Final Word
The Dangote refinery suspends discount scheme to curb a major pricing loophole that compromised both its business operations and consumer affordability objectives. With a full restructuring on the way, industry watchers will be keen to see how the refinery reinforces its distribution chain while preserving fairness and transparency.
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