SONARA Signs Fuel Supply Deal with Dangote Group to Stabilise Cameroon’s Petroleum Market

Cameroon’s National Refining Company (SONARA) has partnered with Nigeria’s Dangote Group and MRS Oil and Gas Company Ltd for the supply of refined petroleum products, in a move aimed at securing a stable fuel supply.

The agreement was signed on October 22 in Lagos, according to a statement from SONARA General Manager Harouna Bako. It comes as Cameroon continues to import all its refined petroleum products after the devastating 2019 fire that crippled SONARA’s refinery in Limbe, forcing the country to export its crude while buying refined fuel abroad.

Under the deal, Dangote Refinery, one of the biggest in the world, is expected to supply about 50 percent of Cameroon’s fuel needs over the next three years, with MRS handling transport and logistics through its fleet and terminals. The proximity of Nigeria’s Lekki port to Limbe is expected to reduce logistical costs.

The agreement was initially scheduled to be formalised at a ceremony in Cameroon on October 29, with Dangote Group President Aliko Dangote expected to travel to Yaoundé.

However, SONARA announced that the ceremony was postponed due to “last-minute constraints” faced by Dangote, but did not provide a new date.

“The General Manager of SONARA deeply regrets any inconveniences resulting from the postponement of this ceremony and will keep the public informed of the new date selected for the official formalization of this agreement,” the statement read.

The deal is a major step taken to stabilise Cameroon’s fuel market, which has faced recurrent shortages in recent years. The 2019 refinery fire left SONARA unable to refine crude, and reconstruction efforts have repeatedly stalled, with the government only recently launching consultations for a public-private partnership estimated at over one billion euros. The refinery’s restart is not expected before 2027 at the earliest .

The supply deficits have licensed a thriving informal market, where roadside vendors sell fuel often smuggled from Nigeria at prices that are either below or fluctuate around the official pump price of FCFA 840 per litre.

In Bamenda, roadside vendors have been selling fuel at 1,200 FCFA per litre, while in Maroua, contraband fuel prices have at times surpassed the official rates due to border closures and supply disruptions.

The SONARA-Dangote agreement is seen as part of a major push to diversify supply sources and reduce dependence on costly international intermediaries.