Selling fuel in West Africa: licences and who is allowed

Fuel is not an ordinary commodity. Everywhere in West Africa, importing, storing, hauling or selling it requires state authorisation. And from one country to the next the rules change completely: licences open to anyone here, a state monopoly there.

Here is who is allowed to sell fuel in six countries of the region, according to the texts, and what it means for a supplier or an investor.

Senegal: a licence for each activity

Law 98-31 of 14 April 1998 liberalised Senegal's hydrocarbon sector while making it subject to licensing. Its article 2 is clear: importing, refining, exporting, storing, transporting, distributing and marketing hydrocarbons are reserved for those holding a licence. Any activity without one is punishable.

Licences are granted by order of the minister in charge of hydrocarbons, after an opinion from the National Hydrocarbons Committee, on criteria of capacity, integrity of shareholders and managers, safety and environmental protection.

A few rules in the law are worth knowing:

• Imports arrive by sea only, and products must go through a bonded depot (article 5).
• Every importer contributes to the security stock (article 6).
• Depots are open to all licence holders. A depot owner, refineries excepted, must give free access to any authorised importer or distributor, without discrimination by brand, provided the product meets the standards (article 8).
• Retail sales happen in stations. Except for lamp oil, sales to anyone without a storage tank must take place in a filling, refilling or fishing station (article 14). Roadside selling has no legal basis.

Detailed conditions for each activity are set by implementing decree 98-338 of 21 April 1998.

Côte d'Ivoire: a distributor approval

In Côte d'Ivoire, buying directly from approved suppliers and opening stations, depots or LPG filling centres requires a petroleum products distributor approval, issued by the Directorate General of Hydrocarbons. According to the official Ivorian public service portal:

• only public limited companies (SA) and limited liability companies (SARL) may apply;
• minimum share capital is 200 million CFA francs, fully paid up;
• the file includes a feasibility study: target market, investment plan, promoters' experience, financing, safety, environment and proof of land ownership;
• the procedure is free of charge.

Burkina Faso: an import monopoly

In Burkina Faso the matter is settled by law: SONABHY holds the monopoly on importing and storing hydrocarbons. Private distributors buy from SONABHY and sell through their stations. A foreign supplier therefore does not sell to Burkinabè distributors: it bids in SONABHY's international tenders. We explain this model in our article on SONABHY and national oil companies.

Ghana: one regulator, many licences

In Ghana the National Petroleum Authority (NPA) issues downstream licences under the 2005 law that created it: importing, exporting, storage, transport, distribution, marketing and sale. Categories range from bulk distribution companies to oil marketing companies (OMCs) and LPG marketers.

A licence is not granted for good. In January 2023 the NPA revoked the licences of 30 oil marketing companies for unpaid fees and breaches of licence conditions.

Nigeria: one regulator for the downstream

In Nigeria, since the Petroleum Industry Act of 2021, the downstream is regulated by the NMDPRA, which issues licences and supervises the market. The market is deregulated: it is within that framework that the Dangote refinery signed its offtake agreement with twelve marketers in February 2026.

Benin: informal selling is banned

In Benin, a June 2018 law penalises illicit fuel trading, in other words roadside kpayo, while providing support for those who lived from it. Since then the government has rolled out licensed mini-stations to move vendors into a legal channel. We wrote a full article on it.

What this means for a foreign supplier

You have fuel to sell, or you buy abroad for the region. Three routes are possible depending on the country:

1. Sell to a licensed importer (Senegal, Côte d'Ivoire, Ghana, Nigeria): delivery at port, into a bonded depot, to a customer entitled to import.
2. Bid in a national company's tenders (Burkina Faso): the only legal entry point for imports.
3. Set up or join a local structure: apply for the licences or approval, with the capital, depots and track record they require.

What exists nowhere is direct sale by an unlicensed foreign supplier to an end consumer.

Our reading

The region's laws are more open than people think. Senegal's 1998 law, for example, requires free access to depots for any licence holder: a new importer does not need to build its own tanks to enter the market. What closes the market is rarely the law; it is capital, access to cargoes and the ability to pay before being paid.

Frequently asked questions

Who can sell fuel in Senegal?

Any individual or company holding the relevant licence, granted by the minister in charge of hydrocarbons under law 98-31 of 14 April 1998. Retail sales must take place in stations, except for lamp oil.

How much capital do you need to distribute fuel in Côte d'Ivoire?

At least 200 million CFA francs fully paid up, for an SA or SARL, with a feasibility study and proof of land ownership, according to the Ivorian public service portal.

Can a private company import fuel into Burkina Faso?

No. SONABHY holds the monopoly on imports and storage. Suppliers go through its tenders.

Do you need a licence to open a filling station in West Africa?

Yes, everywhere in the region. Fuel distribution requires a licence or approval, and station siting follows each country's safety and planning rules.

What we do

GraceRoad works with licensed importers and depots in Côte d'Ivoire, Benin, Togo and Senegal, and with international traders for full cargoes. If you are a supplier, we can tell you who is entitled to buy your product in each country. If you are a consumer, we deliver within these rules.

Read next: national oil companies in West Africa and fuel storage in West Africa.

Sources: Senegal law 98-31 of 14 April 1998 on the import, refining, storage, transport and distribution of hydrocarbons, published by the energy sector regulator (CRSE), articles 2 to 8, 14 and 15; decree 98-338 of 21 April 1998; Ivorian public service portal, procedure "Demander un agrément pour la distribution des produits pétroliers et dérivés"; SONABHY official website (monopoly); Ghana National Petroleum Authority, Licensing page; Ghanaian Times, 13 January 2023 (30 licences revoked); Nigeria Petroleum Industry Act 2021; Nairametrics, 25 February 2026 (Dangote agreement and NMDPRA framework); Wikipedia (French), Kpayo (Benin June 2018 law); La Météo, 2026 (mini-stations).