Nigeria’s petroleum marketers are raising red flags over the growing dominance of Dangote Refinery, warning that unchecked power could stifle competition, inflate prices, and marginalise smaller players.
Speaking on TVC on Friday, Olufemi Adewole, Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), warned that Dangote Refinery’s monopoly ambitions are becoming a real threat.
“There’s no cabal,” Adewole clarified. “But vested interests exist. Our members invested billions in infrastructure to ensure consistent fuel supply. They deserve a fair and competitive market.”
Dangote Claims Sabotage, Marketers Cite Exclusion
The warning follows recent comments from Aliko Dangote, who said his $20 billion refinery is under siege from oil importers who profited from decades of fuel subsidies. According to Dangote, these groups are resisting local refining because it disrupts their business models.
“They’ve made fortunes from importing fuel. Now they’re fighting us,” Dangote told investors in Lagos. “We’re under pressure, but we’ll survive.”
Though the refinery is designed to refine 650,000 barrels of crude oil daily, DAPPMAN argues that it still doesn’t meet Nigeria’s fuel demand. Smaller depots, they say, continue to carry the burden of distribution.
DAPPMAN Warns: Ending Imports Now Would Be Chaotic
Adewole cautioned that abruptly halting fuel imports would cause chaos and effectively grant Dangote Refinery monopoly control over supply.
“Even with its scale, Dangote isn’t producing enough. If we stop imports now, we risk shortages and a monopoly,” he stated.
DAPPMAN supports a phased transition away from imports, tied to the full activation of other local refineries. Immediate withdrawal, they argue, would harm consumers and undermine supply resilience.
Legal Moves Reflect Monopoly Intentions, DAPPMAN Says
Citing recent litigation by Dangote Refinery against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), DAPPMAN sees clear signs of monopolistic behaviour.
“They want to restrict the issuance of import licences,” said Adewole. “That undermines the Petroleum Industry Act, which encourages free-market competition.”
Smaller Marketers Face Discriminatory Access
Another concern is restricted access to Dangote’s fuel. Adewole revealed that many depots, particularly in Calabar and Port Harcourt, are unable to load fuel in bulk.
“We have the facilities for bulk loading 10,000 to 20,000 metric tons. But the refinery prioritises selected marketers and uses gantry sales, not vessels,” he explained.
Worse, depot owners are suffering financial losses when Dangote drops prices after products have already been purchased and shipped by others.
High Distribution Costs Keep Fuel Prices Elevated
Despite local refining, prices remain high due to logistics, refinery margins, and interest rates on capital. According to Adewole, importing 20,000 metric tons of fuel can cost over ₦20 billion—usually financed at steep borrowing rates.
“Operational costs, ageing depots, and rising diesel prices all affect pump rates,” he said.
A Call for Balanced Regulation
While affirming support for domestic refining, DAPPMAN urged regulators to preserve market balance.
“We don’t oppose Dangote,” Adewole concluded. “We just want a level playing field. A monopoly will hurt consumers, marketers, and economic stability.”
With Dangote Refinery’s clout growing, the debate over market fairness is intensifying. As Nigeria pushes forward with its energy reforms, maintaining fair access and competitive pricing remains key to protecting national interests.
