Speaking during the West African Refined Products Pricing and Markets Development Conference held Wednesday in Abuja, Olufemi Adewole, Executive Secretary of DAPPMAN, accused the Dangote Refinery of limiting access to petroleum products through preferential sales practices and non-transparent pricing.
“Since the advent of Dangote Refinery, it has not been smooth sailing,” Adewole said. “We had preliminary meetings with the management of Dangote refinery. We had promises and assurances that we will be accommodated… but when we got there, we discovered that he deployed a restrictive sales method.”
Key Grievances: Access, Pricing, and Distribution Model
DAPPMAN members, who operate 32 of Nigeria’s 120 petroleum product depots with a combined storage capacity exceeding 2 million metric tonnes, claim they have registered with the Dangote Refinery but remain largely sidelined in its distribution model.
According to Adewole, rather than receiving clear and upfront pricing, marketers are only issued proforma invoices (PFIs) after approaching the refinery — often without prior price information.
“He has a selected group that he wants to trade with,” Adewole alleged. “We need the product, and we want the product from Dangote, but is Dangote ready to give us what we want?”
Another major concern is the refinery’s preference for gantry loading, which forces marketers to send trucks directly to the refinery’s location in Lekki. For marketers with extensive retail networks — some owning 200 to 400 filling stations nationwide — this method is logistically and financially impractical.
“You cannot tell someone with 400 outlets to bring trucks to Lekki. It’s not workable. The facilities will degrade quickly,” Adewole warned.
DAPPMAN members typically lift products via coastal vessels, which allow more efficient and bulk deliveries to their inland depots. However, Adewole noted that Dangote reportedly withholds coastal pricing or delivery for most marketers — except a select few.
“He gives coastal supplies and deliveries to selected partners but holds on to coastal prices for others,” he said.
Preference for Imports Over Limited Domestic Supply
The implications of this access gap are serious. Although the Petroleum Industry Act (PIA) encourages domestic offtake — especially from naira-denominated sources like Dangote — marketers say they are left with no choice but to explore foreign supply options, particularly from ports like Lomé in Togo.
“Any marketer who sees an opportunity to get products cheaper from abroad will go for it,” Adewole said, highlighting the persistence of fuel imports despite Nigeria’s increased refining capacity.
Calls for Regulatory Intervention
Amid growing frustration, DAPPMAN has urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to step in and check perceived anti-competitive practices.
“We want [NMDPRA] to promote competition and checkmate any anti-competitive act… to guarantee the survival of both big and small players,” Adewole stated.
Echoing similar concerns, Clement Isong, Executive Secretary of the Major Energy Marketers Association of Nigeria (MEMAN), stressed the importance of regulatory balance in the face of market dominance.
“When there is a dominant player, the regulator must ensure all players have access to products,” Isong said. “Otherwise, it’s not a market — it’s a monopoly.”
A Tipping Point in Nigeria’s Fuel Supply Chain?
The Dangote Refinery, with a capacity of 650,000 barrels per day, has been widely touted as a game-changer for Nigeria’s fuel import dependency. However, its early operations are already raising questions about equitable access, pricing transparency, and its impact on market dynamics.
As stakeholders call for regulatory safeguards, the challenge for authorities will be striking a balance between protecting domestic investment and ensuring a fair, competitive downstream market — one that doesn't sacrifice the operational viability of the broader petroleum distribution ecosystem.