The Dangote Refinery has announced a new 10-day credit facility for petrol station owners and dealers, backed by a bank guarantee, alongside free direct delivery and other incentives, in a move set to further reshape competition in Nigeria’s downstream petroleum sector.
The offer was disclosed in a statement posted on the company’s official X (formerly Twitter) handle on Tuesday, inviting petrol station operators nationwide to register to benefit from the arrangement.
According to the statement, participating dealers will have access to “a 10-day credit facility backed by a bank guarantee,” with a minimum order requirement of 5,000 litres. The company also confirmed that free direct delivery to stations will commence shortly.
“Our free direct delivery service will commence soon,” the statement said, adding that the supply arrangement is open to “all petrol station owners and dealers.”
The Dangote Group urged operators to register their outlets to access the scheme, noting that fuel supplied under the arrangement would be sold at a gantry price of ₦699 per litre.
“Register your petrol stations today to benefit from our competitive gantry price,” the statement read.
The announcement follows a recent downward review of petrol prices by the Dangote Petroleum Refinery, which cut its ex-depot price from ₦828 to ₦699 per litre — a reduction of ₦129 or about 15.6 per cent.
An official of the refinery, who spoke on condition of anonymity, confirmed that the new price took effect on December 11, 2025, marking the 20th petrol price adjustment by the refinery this year.
Why Dangote Is Extending Credit Now
The introduction of a credit-backed supply model represents a strategic escalation in Dangote’s push to dominate Nigeria’s liberalised downstream market. By offering dealers a short-term credit window, free logistics, and a sharply lower gantry price, the refinery is directly addressing two of the biggest constraints facing independent marketers: working capital pressure and high distribution costs.
For many station owners, access to affordable credit has historically been limited, forcing them to rely on cash-and-carry purchases or expensive short-term borrowing. Dangote’s model effectively substitutes balance-sheet strength and bank guarantees for cash upfront, improving liquidity at the retail level.
Impact Analysis: What This Means for Nigeria’s Downstream Sector
The move is likely to have far-reaching implications across the downstream value chain, particularly against the backdrop of an intensifying price war.
Pressure on Importers and Marketers
Dangote’s ₦699 per litre gantry price, combined with credit terms and free delivery, significantly undercuts the economics of imported petrol. Importers face exposure to foreign exchange volatility, port charges, demurrage, financing costs, and regulatory fees — all of which are largely absent in a domestically refined, naira-priced supply model.
As a result, independent importers may find it increasingly difficult to compete unless global prices fall sharply or policy interventions shift in their favour. Smaller marketers without access to similar credit terms could also be squeezed out.
Escalation of the Price War
The downstream sector is already experiencing intense price competition, with pump prices falling sharply from highs above ₦1,200 per litre earlier in the year. Dangote’s latest move deepens the price war by transferring margin pressure from the refinery level to importers and retailers.
While consumers stand to benefit from lower pump prices in the short term, sustained margin compression raises questions about the long-term viability of multiple players in the market.
Renewed Debate Over Fuel Imports
Dangote’s aggressive pricing and credit strategy is likely to reignite calls from the refinery and its supporters for restrictions — or an outright ban — on petrol imports. Proponents argue that protecting domestic refining capacity would stabilise prices, conserve foreign exchange, and support industrial policy.
Opponents counter that import bans risk entrenching a dominant supplier, reducing competition, and creating new pricing vulnerabilities if domestic supply disruptions occur.
Shift in Market Power
By combining pricing, logistics, and financing into a single supply proposition, Dangote is effectively redefining competition in the downstream sector. Market power is shifting away from traders and importers toward integrated refiners with scale, infrastructure, and access to finance.
The Bigger Picture
Dangote’s 10-day credit facility underscores how Nigeria’s post-subsidy, liberalised fuel market is rapidly evolving. Competition is no longer centred solely on pump prices but increasingly on access to capital, logistics efficiency, and balance-sheet strength.
For petrol station owners, the offer provides short-term relief and improved cash flow. For the broader industry, it signals a decisive new phase in the struggle between domestic refining and fuel imports — a contest that will shape pricing, policy, and market structure well into 2026.
