MEMAN, S&P, Experts Spotlight Lomé Port, Dangote Refinery as Game-Changers in West African Fuel Market

• The ex-Lomé offshore trading hub has become a vital and resilient component of West Africa’s petroleum supply chain, offering flexible, smaller parcel trading, enhanced security, and efficient logistics that complement growing domestic refining capacity, notably Nigeria’s Dangote refinery.

Discussions revolved around the critical role of the ex-Lomé offshore trading hub, which has rapidly evolved into an indispensable platform for petroleum product distribution in West Africa.

Mrs. Ogechi Nkwoji, MEMAN’s Head of Economic Intelligence, Research, and Regulation, outlined how ex-Lomé emerged as a practical and strategic response to longstanding bottlenecks in Nigeria’s onshore supply chain.

With Nigeria’s domestic refineries underperforming since the 1990s, and logistical challenges exacerbated by port congestion and foreign exchange constraints, ex-Lomé became an offshore alternative where large refined product cargoes are discharged into floating storage vessels anchored off Lomé, Togo. From these floating storages, primarily Nigerian marketers acquire smaller parcels ranging from 5,000 to 20,000 tonnes. The hub’s deepwater berths, stringent security, modern infrastructure, regulatory clarity, and ability to facilitate same-day trading have made ex-Lomé a vital reference point for price discovery and a flexible buffer that cushions disruptions onshore.

Gary Clark, Associate Editorial Director for EMEA Clean Refined Products at S&P Global, affirmed that the commissioning of the Dangote refinery—a transformative addition to West Africa’s refining capacity—has reshaped regional trade flows by retaining much of the gasoil demanded within West Africa and enabling jet fuel exports internationally. Nevertheless, he cautioned that import dependence has not disappeared and that refinery outages or maintenance intervals quickly heighten market volatility, underscoring the ongoing importance of trading hubs like ex-Lomé.

Clark announced new Platts regional pricing assessments tailored to capture local market realities, including a low-sulphur diesel FOB West Africa benchmark based on cargoes loading at Lekki and Lagos ports, alongside a ship-to-ship diesel assessment for Lomé and Togo. These pricing innovations enhance transparency and better reflect the dynamic and fragmented nature of West African fuel trades.

Matthew Tracey-Cook, Senior Price Reporter for EMEA Gasoline and West Africa Refined Products at S&P Global, highlighted how fluctuations at Dangote’s Fluid Catalytic Cracking (FCC) unit significantly influence West African fuel markets. He referenced an outage in August that abruptly pushed gasoline crack spreads from around $13 to more than $17 per barrel, revealing the refinery’s outsized influence on Atlantic basin product balances.

Tracey-Cook further explained that Platts’ new approach to benchmarking West African trades against forward swaps strips—rather than traditional spot-to-spot comparisons—reduces pricing noise and captures marginal trade behaviors more accurately, aligning closely with how ex-Lomé operates through agile, smaller parcel trades and same-day deal executions.

The webinar also traced the changing geometry of West African supply chains. While Europe remains a foundational supplier of refined petroleum products, its direct exports to Nigeria have waned, with more cargoes now routed through regional hubs like Lomé where they are broken down into smaller consignments for coastal and inland markets.

Additionally, supply flows from the Middle East, United States, and India—often rerouted to avoid congested or geopolitically sensitive passages such as the Suez Canal—have added complexity and resilience to the regional supply network. Panelists agreed that, although Dangote’s refinery has bolstered Nigeria’s productive capacity, sustaining multiple sourcing channels and trading hubs like ex-Lomé is crucial for market stability and supply security.

Beyond supply considerations, the session addressed sensitive policy debates, including pump price controls, fuel smuggling, and competition among regional trading hubs. Experts differentiated market-driven pre-tax supply costs—shaped by global refining capacity and demand fundamentals—from government influence through taxes, subsidies, and fiscal policies. The removal of fuel subsidies was credited with helping to counteract smuggling, while maintaining consistent refinery operations and ensuring diversified supply remain key to minimizing price volatility.

Speakers at the webinar further emphasized that attracting vital downstream investment requires clear, consistent regulatory frameworks, equal competition conditions, enhanced security, and investor confidence—all factors that influence the commercial viability of hubs like ex-Lomé and domestic refining projects alike.

Closing the webinar, MEMAN’s CEO and Executive Secretary, Mr. Clement Isong, reiterated the association’s commitment to fostering stakeholder engagement and improving market transparency through its partnership with S&P Global.

According to Isong, Dangote’s commissioning has undoubtedly reshaped regional trade flows but not eliminated Nigeria’s reliance on imports. Refinery outages continue to be major drivers of market price swings, while ex-Lomé consolidates its position as a flexible marginal hub providing small parcel supply and supporting robust price discovery.

He reiterated the trend of the discussions; highlighting that policy stability, transparent regulation, and maintaining diverse market alternatives are fundamental pillars to attracting investment, strengthening supply resilience, and underpinning the sustainable growth of West Africa’s downstream petroleum sector.

Overall, the webinar painted a comprehensive picture of a downstream fuels market in flux—anchored by the growing strategic importance of ex-Lomé as a complementary trade and pricing hub to expanding domestic refining capacity.

This duality of supply sources, operating within an evolving geopolitical and economic context, according to speakers at the webinar, will shape the future resilience and efficiency of petroleum product supply chains across West Africa for years to come.