The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has raised serious concerns over the growing influence of Dangote Refinery in Nigeria’s downstream petroleum sector, warning that the refinery’s dominance could destabilize the market.
Speaking in a televised interview on Friday, May 9, DAPPMAN’s Executive Secretary, Olufemi Adewole, warned that the refinery’s pricing strategies and scale of operation are edging out private depot owners who have long supported the sector.
“There are no cabals in the system as alleged by Aliko Dangote,” Adewole stated. “There are only people with vested interests who have invested billions of naira into this sector and stood by Nigerians during difficult times.”
He criticized the refinery’s alleged practice of offering selective supply, saying, “Our members are not getting a fair product pricing from the mega refinery.
They prefer selling only to a few marketers via gantry supplies, rather than allowing bulk depot loading.”Adewole also cautioned against the federal government’s reported plans to ban fuel imports, noting that Dangote Refinery alone cannot yet meet national demand. “Ending fuel imports now would create chaos.
A phased strategy is more appropriate,” he said.The DAPPMAN executive further accused Dangote Refinery of triggering a price war that is financially damaging to smaller marketers. “They cut prices after cargos have left the loading gantry. Marketers are incurring losses quietly,” he said.
In defending the downstream regulatory body, Adewole praised the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for maintaining market integrity, despite ongoing legal action filed against it by the Dangote Group.
“The lawsuit shows a desire to bypass market checks,” he added.Highlighting the financial pressure depot owners face, Adewole explained, “Depot operations are tough. Equipment is ageing, and capital costs are high.
To import 20,000 metric tons, a marketer needs an exposure of over N20 billion — most of it funded at high interest rates.”
DAPPMAN’s warning follows a broader concern from other groups like the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), which has also cautioned the government against banning petroleum product imports too soon.
