The Depot And Petroleum Products Marketers Association of Nigeria (DAPPMAN) has expressed concern over a growing monopoly in the downstream petroleum sector, citing the dominance of the Dangote Refinery as a potential threat to market stability.
In a recent interview, DAPPMAN Executive Secretary Olufemi Adewole clarified that while there’s no “cabal” in the sector, private depot owners have “vested interests” after investing billions to ensure uninterrupted fuel supply.
“They were there when nobody else was,” Adewole said. “They bridged the gap and ensured Nigerians had access to fuel. They deserve returns on their investments.”
His remarks followed claims by Dangote Group President Aliko Dangote that entrenched interests were sabotaging his $20 billion refinery, which has been “fighting for survival” against those benefiting from imported, subsidized petroleum products.
“We are fighting, and the fight is not yet finished,” Dangote said. “But I’m 100% sure I will win.”
Adewole argued that despite its massive 650,000 bpd capacity, the Dangote Refinery has yet to meet current demand, making private importers critical to ongoing fuel availability.
“Stopping imports now would be chaotic,” he said. “Only when multiple refineries are operating can we consider phasing them out.”
He warned that Dangote’s size gives it excessive control over pricing and access, describing the monopoly threat as a “clear and present danger.”
“The refinery’s capacity allows it to manipulate prices and dictate terms,” he said. “We’d rather not have that kind of market.”
DAPPMAN also criticized Dangote Refinery’s preference for selective supply via gantries rather than bulk loading to depots nationwide, limiting distribution. Adewole revealed that some marketers face losses when prices are cut after products leave the gantry.
Adewole praised regulators, particularly the Nigerian Midstream and Downstream Petroleum Regulatory Authority, for upholding the free market principles of the Petroleum Industry Act (PIA), but noted with concern Dangote Refinery’s recent lawsuit against the authority’s licensing powers.
“Their court challenge tells you their mindset,” he said. “We are working with regulators to prevent any drift toward monopoly.”