The trouble at Dangote Refinery has reportedly deepened as its petrol-producing unit has shut down

Amid the ongoing industrial dispute against Dangote Refinery by the Petroleum and Natural Gas Senior Association of Nigeria (PENGASSAN), the mega refinery has run into new challenges.

Also, data shows that the refinery is facing crude oil challenges as intakes slowed in September.

The refinery’s challenges are also compounded by industrial action as oil unions protest the sack of 800 Nigerian workers at the facility

Africa’s largest refinery is reportedly grappling with operational challenges as crude oil inflows drop sharply in September 2025.

Also, the facility’s petrol-producing unit and residual fluid catalytic cracker (RFCC) have allegedly broken down.

According to the petroleum product-tracking platform, PetroleumPriceNG, the failure to issue new pro forma invoices has triggered hoarding at the refinery, leading to higher petrol prices.

Recall that Legit.ng reported that the 650,000 bpd-capacity refinery increased its ex-depot prices for petrol to N860 per litre, up from N825.

Experts attributed the increase, which also affected other depot operators, to a rise in crude prices.

Meanwhile, crude intake into the mega refinery dropped sharply this month. Data from Vortexa shows that inflows dropped to about 250,000 barrels per day.

Energy policy analysts warn that if the scenario continues, it will be the lowest crude supply to the Lekk-based plant since September last year, when Fitch downgraded it and banks tightened finance lines, shrinking its ability to purchase crude.

With less feedstock coming in, the facility cannot run at optimal capacity, which is currently estimated at 500,000 barrels per day. Also, it shows Nigeria’s vulnerability as the world’s largest single-train refinery struggles to maintain stable production.

As crude supply dips, the RFCC has also gone offline for maintenance, with industry watchers speculating that the unit may not resume full operations until early October.

Meanwhile, the refinery has redirected more low-sulphur straight-run fuel into the export market. Data shows that exports hit 320,000 barrels per day this month, the refinery’s highest cargo shipment on record.

The shift may keep revenue coming, but it starves the Nigerian and African market of the much-needed petroleum product supply.

Experts say product inflows from other regions into West Africa have slowed to less than one million tonnes of petrol and blending components in September. The figure is reportedly below the year-to-date average and marks the weakest September arrival on record.

This means West Africa is receiving fewer petrol imports as Dangote struggles to stabilise operations. The squeeze increases the refinery’s dominance as its failure could have multiple ripple effects in the petroleum product market.

The production challenges have affected the downstream sector. In early September, the massive plant halted sales, promising to resume allocation later in the month.

Already, the delay has created panic, as marketers holding old stocks hoard them, selling at premium rates.

Reports say depot prices surged above Dangote’s N820 per litre ex-depot price of N820 to N870, while Wosbab Lagos recorded the highest daily increase at almost three per cent.

The situation at Dangote demonstrates that sheer size does not guarantee stability. The refinery’s challenges highlight Nigeria’s precarious balance between energy security and vulnerability to global oil volatility.

Every disruption quickly translates into inflationary pressures within the downstream market. For Dangote, the immediate priorities are clear: restore RFCC operations and ensure timely PFI issuance.

For Nigeria, the lesson is more profound: without enhanced upstream output and improved policy coordination, the aspiration of affordable, dependable petrol may remain elusive, even with Africa’s largest refinery.

The World Bank Group, through its private sector arm, the International Finance Corporation, has completed its first securitisation transaction, marking a milestone in the global effort to channel private institutional capital into emerging markets.

In a statement sent to Saturday PUNCH, the lender disclosed that the $510m collateralised loan obligation represents the first tangible step in IFC’s broader strategy to establish an “originate-to-distribute” model for investments in developing economies.

The transaction involves repackaging IFC’s loan portfolio into rated securities, thereby creating a new asset class that meets the risk and return requirements of global institutional investors, including pension funds, insurance companies, and asset managers.

According to IFC, this approach is expected to unlock access to the world’s largest pools of capital while freeing up its balance sheet to finance additional projects across developing countries.

World Bank Group President, Ajay Banga, said the initiative underscores the institution’s ambition to mobilise private investment at scale, describing it as crucial for long-term economic transformation.

“Mobilising private investment at scale is essential to creating the jobs that give people a ladder out of poverty and begin the journey of changing a family’s trajectory for generations,” Banga said.

“This is step one in an originate-to-distribute strategy that holds significant potential to attract private capital at scale. It also frees up our balance sheet so we can support more countries and more private-sector players. The opportunity and the need are much larger, and so is our ambition.”

The deal has already attracted significant interest from investors and was listed on the London Stock Exchange. It features a $320m senior tranche purchased by private investors, a $130m mezzanine tranche insured by a consortium of credit insurers, and a $60m equity tranche.

Goldman Sachs acted as the arranger for the transaction, which is expected to serve as a scalable and replicable model for future issuances. The World Bank Group said it would continue launching regular issuances under this framework, reinforcing its commitment to building a sustainable pipeline for private-sector participation in development finance.

The structure of the deal is designed to address two critical challenges facing development financing. Firstly, it creates a vehicle that gives institutional investors exposure to emerging market credit opportunities that are typically out of their reach. Secondly, it enables the IFC to recycle capital and expand its lending to high-impact projects in countries most in need of support.

The originate-to-distribute approach was one of the key recommendations of the Private Sector Investment Lab, an advisory body established in June 2023. The Lab was tasked with identifying barriers to private-sector investment in emerging markets and designing practical solutions.

By securitising its portfolio, the IFC is demonstrating how innovative financial instruments can bridge the gap between global investors’ appetite for yield and the financing needs of developing nations.

Development experts note that such initiatives are vital for meeting the massive infrastructure, energy, and social investment requirements of low- and middle-income countries. With public funding and traditional aid flows proving insufficient, attracting private capital has become a cornerstone of the World Bank’s strategy under Banga’s leadership.

Analysts believe the success of this transaction will encourage similar models across other development finance institutions, setting the stage for a broader mobilisation of private capital into regions often overlooked by mainstream markets.

For the World Bank Group, this pioneering securitisation is not only a financial innovation but also a signal of its evolving role—transitioning from being just a lender to becoming a catalyst for large-scale investment flows into developing economies.

Some fuel importers and depot owners have raised alarm over what they describe as a double standard by the Dangote Petroleum Refinery, accusing the company of selling petrol to international traders at ₦65 cheaper per litre than the price offered to local marketers.

The Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) claimed the practice was undermining competition and putting local businesses at risk.

The Executive Secretary of DAPPMAN, Olufemi Adewole, revealed that many of their members had bought petrol from Lomé, Togo, where international traders supplied at prices lower than those quoted by Dangote to Nigerian marketers.

“Dangote is selling to international traders at ₦65 cheaper than what he is selling to us. In some instances, we were able to buy from those people and still bring it to Nigeria. They will take the product to Lomé, claiming they are buying large quantities,” Adewole said in an interview with The PUNCH.

He added that repeated requests for supply allocations had either been ignored or tied to conditions that make business unprofitable, forcing importers to look elsewhere.

Marketers Demand Discounts
Adewole further argued that Dangote’s pricing model placed domestic players at a disadvantage.

“Dangote has to give us a discount for freight cost and other expenses between his jetty and our depots. Without this, we can’t sell competitively. People will continue to import if it’s cheaper abroad,” he insisted.

On his part, the President of PETROAN, Billy Gillis-Harry, backed DAPPMAN’s position, confirming that the refinery’s products were indeed cheaper in Togo than in Nigeria.

“Exactly, DAPPMAN said the correct thing. It is true. We don’t want to be saying everything. But the way things are going, one day we will say everything,” Gillis-Harry said.

Dangote Refinery Reacts, Denies Claims
However, in a swift response, the Dangote Refinery dismissed the allegations, suggesting that DAPPMAN was behind the recent labour tension with the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), which accused the company of anti-union practices.

“We now know who is behind NUPENG. Our free delivery starts Monday,” A spokesman for the refinery told journalists on Sunday.

The official also questioned why marketers now sourced fuel from Lomé, asking, “When did they stop buying from Russia and Malta?”

Adewole accused the refinery of using strategically timed price cuts to destabilise the market. He recalled that Alhaji Aliko Dangote once vowed to slash prices whenever importers brought in cargoes, forcing competitors into financial distress.

He described Dangote’s repeated reductions as “calculated moves to stifle competition” rather than patriotic interventions, noting that international buyers were given better deals than Nigerians.

Naija News reports that DAPPMAN insisted that Nigeria’s downstream sector cannot rely on a single refinery.

“While we welcome the Dangote refinery as a major infrastructure project, its contribution has peaked at only 30 to 35 per cent of national demand. The balance continues to be supplied by responsible petroleum product marketers who import and distribute under strict regulation,” Adewole stressed.

He further criticised the refinery’s “free delivery” scheme, claiming marketers were forced to lift 25% of allocations using only Dangote-owned trucks at commercial rates, which added hidden costs.

Refinery to Roll Out CNG Trucks, Slash Prices
Meanwhile, Dangote Refinery confirmed that it would begin deploying compressed natural gas (CNG) powered trucks on Monday as part of its logistics-free distribution initiative.

The company said the rollout would reduce the gantry price to ₦820 per litre, with the expectation of lower pump prices across key states.

Naija News reports that the pricing row comes amid a brewing face-off between Dangote and NUPENG, which recently threatened to embark on strike, accusing the refinery of blocking drivers from joining unions.

DAPPMAN said while the matter did not directly involve them, they were “alarmed by the tone and escalation of the crisis,” warning that the dispute could worsen fuel supply stability in a fragile downstream market.