Oil marketers across Nigeria have raised alarm over Dangote Petroleum Refinery’s plan to distribute fuel directly to filling stations nationwide, warning that the move could trigger widespread business closures and job losses.
Under the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), marketers argue that the Dangote refinery’s strategy amounts to an aggressive market takeover. With a daily capacity of 650,000 barrels, the refinery is now planning to bypass traditional supply chains and deliver petrol and diesel straight to end-users.
“This massive refinery… is expected to satisfy domestic fuel demand and export surplus products,” said PETROAN in a statement signed by its Publicity Secretary, Joseph Obele. “But instead, Dangote is moving to dominate the downstream sector.”
The association accused the company of using a “pricing penetration strategy” to undercut competition, claiming this could “force other filling station operators to quit the market.” PETROAN also raised concerns that 4,000 CNG-powered trucks recently introduced by Dangote would displace thousands of existing truck drivers and independent transporters.
“It is obvious that Dangote plans to gain full monopoly of the downstream sector, which would enable the company to exploit Nigeria’s petroleum consumers,” said Dr. Billy Gillis-Harry, PETROAN National President.
He called on regulators, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority, to “put in place price control mechanisms to prevent any form of monopoly.”
PETROAN estimates that over 2,100 petrol retail outlet owners, 70 tank farm operators, and 95 jetty managers could be pushed out of business if the direct distribution model is implemented nationwide. Many marketers have already scaled down due to unpredictable pricing and financial losses.
However, Dangote Group has defended the initiative as a “transformative national programme” that will start August 15, 2025. According to the company, fuel will be delivered to dealers, manufacturers, and key sectors free of logistics costs, boosting supply and accessibility.
“Our goal is to provide equitable access to affordable fuel for all Nigerians, regardless of location,” the company said in a Sunday statement. “This is part of our broader commitment to eliminate logistics costs, enhance energy efficiency, and support economic development.”
Petroleum economist Prof. Wumi Iledare disagrees with monopoly fears, calling it a “classic case of vertical integration.” He argued that the move could “improve efficiency, reduce pump prices, and enhance product availability.”
“The real issue is not Dangote’s scale,” he added, “but whether the regulatory environment ensures a level playing field.”
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), also welcomed the move. “It will create more jobs as more drivers would be employed by the refinery,” he said.
Despite the divide among stakeholders, the Dangote refinery is moving ahead with a 60-day registration period for marketers and large fuel consumers, which includes a Know Your Customer (KYC) verification process.
As part of its offer, the refinery will also extend credit facilities—marketers purchasing 500,000 litres can get an additional 500,000 litres on a two-week credit backed by a bank guarantee.
While PETROAN insists that “competition should always be encouraged to protect consumers,” Dangote says its initiative aligns with President Bola Tinubu’s Renewed Hope Agenda, aiming to revolutionize the sector and lower fuel prices nationwide.
