Nigeria’s fuel market is witnessing a circular trade pattern, as petrol refined by the Dangote Refinery is exported and later re-imported through Lomé, Togo, raising fresh pricing and supply concerns.
This trend was disclosed on Thursday by S&P Global Energy analyst Matthew Tracey-Cook during a MEMAN webinar on West African fuel pricing and supply flows.
He said Nigerian marketers increasingly source refined products through offshore ship-to-ship (STS) operations in Lomé, even when the products originate from the Dangote Petroleum Refinery in Lagos.
The refinery, commissioned in phases since 2023, is Africa’s largest, with capacity to refine 650,000 barrels per day.
However, despite rising output, offshore trading routes remain central to distribution across West Africa.
He said, “Over the last six months, if you look at the volume of products on a waterborne basis that’s imported directly into Nigeria, Dangote production has become increasingly dominant.”
He added, “For several months, from March until May, we saw well over 70 to 80 per cent of the volumes that were imported into Nigeria actually originated from Dangote.”
He explained that these were “coastal Dangote volumes which were re-imported.”
Lomé Hub Drives Regional Fuel Flows
The Lomé STS hub plays a key role in this trade cycle, acting as a transfer point for refined products across the region.
Large tankers discharge fuel offshore, which is then redistributed into smaller vessels suited for ports with limited capacity.
He said, “Lomé has become an increasingly important transshipment hub for filling regional shortages across the region.”
He added, “It serves an important purpose, given that many ports in West Africa don’t have the capacity to take a fully laden MR-sized vessel.”
Data presented showed Dangote-origin petrol, diesel, and jet fuel forming a major share of volumes handled offshore.
Meanwhile, Lomé’s activity levels remain higher than 2024 figures, despite increased direct supply from Nigeria.
Tracey-Cook also described Dangote and Lomé as central supply anchors in the region.
He said, “These two locations, the FOB Dangote market and also the STS Lomé market, are the two largest and most important regional hubs of supply.”
He added, “You can, in a way, kind of compare it to the Mediterranean market.”
Pricing Gaps And Global Demand Impact
The trade loop has drawn attention to pricing differences between local and international markets.
In 2025, Nigerian marketers alleged that Dangote petrol sold to foreign traders was about ₦65 cheaper per litre than domestic supply.
Industry groups like DAPPMAN said some marketers found it cheaper to import Dangote-origin fuel from Lomé than buy locally.
They said, “Dangote is selling to international traders at N65 lower than what he offers in Nigeria.”
They added, “Dangote sells to international traders at N65 cheaper than what he is selling to us.”
However, the refinery denied selling cheaper fuel abroad, maintaining that its pricing structure reflects market conditions.
Globally, the Middle East conflict has reshaped fuel supply chains, boosting demand for alternative sources.
Tracey-Cook said, “This is really an unusual seasonal trend where gasoline in West Africa is significantly more expensive than it is in Europe right now.”
He added that Dangote has become a major global supplier, especially in jet fuel exports.
He said, “We actually saw in May Dangote being the largest single exporter of jet fuel globally.”
Exports from April to June 2026 reached markets in Europe and Africa, including the UK and Netherlands.
With Dangote scaling production and Lomé retaining its strategic role, West Africa’s fuel market is evolving into a complex, interconnected trading system.
