An energy economist, Prof. Izielen Agbon, has raised fresh concerns over competition in Nigeria’s downstream petroleum market, alleging that the Dangote Refinery has gained enough market influence to shape the price of petrol sold across the country.

According to Sahara Reporters, Agbon made the allegation during a webinar and public discussion organised by the Alliance on Surviving COVID-19 and Beyond (ASCAB), where he argued that the refinery’s large share of domestic petrol supply gives it significant influence over the pricing decisions of other market players.

The energy expert also questioned the refinery’s pricing model, claiming that its petrol is priced with reference to international market values even when crude supplied to it is purchased locally in naira. He put the refinery’s claimed benchmark at about $0.799 per litre and said the approach effectively links domestic petrol prices to import parity.

Agbon further alleged that Nigerian fuel marketers had, between March and June 2026, sourced petrol produced by the Dangote Refinery through international traders in Lomé, Togo, before bringing the product back into Nigeria. According to him, the arrangement enabled some marketers to sell the same petrol below Dangote’s domestic price.

He described the alleged practice as a “Lomé circular trade,” saying international traders including Vitol, Trafigura and Glencore were involved in offshore transactions through which Dangote products were transferred before being sold to Nigerian marketers outside the country.

Agbon said the development exposed what he described as a contradiction in the domestic market, where the refinery could influence local prices but remained subject to international market forces when its products were sold abroad.

He also alleged that Dangote had clashed with regulators and organised labour over issues surrounding competition, market regulation and workers’ interests, arguing that the commercial objectives of a private refinery would not necessarily be identical to those of Nigerian consumers or workers.

The energy expert maintained that greater competition was necessary in the petroleum market, particularly as Nigeria’s refining landscape changes. His comments come amid continuing debate over the role of domestic refining, petrol imports and regulation as Dangote Refinery becomes a major supplier to the Nigerian market.