Tensions are escalating between major oil marketers and the Dangote Petroleum Refinery as both sides vie for control of Nigeria’s downstream oil sector, Saturday DIP CONNECTS reports.
Alhaji Aliko Dangote, President of the Dangote Group, recently revealed that his $20bn refinery is still “fighting for survival” due to ongoing sabotage by entrenched interests and oil sector cabals who oppose domestic refining. He lamented that this resistance began even before the facility became fully operational, but expressed determination to overcome the obstacles.
Dangote’s comments were prompted by marketers’ ongoing preference for fuel importation, despite improved output from his refinery. Between March 1 and May 9, 2025, oil marketers—utilizing scarce foreign exchange—imported 2.57 billion litres of Premium Motor Spirit (petrol), choosing not to buy in bulk from the Dangote facility.
Documents from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Blue Sea Maritime showed that 755.7 million litres were imported in March alone, with April imports surging to 1.47 billion litres. An additional 331.33 million litres arrived in the first 10 days of May. At an average landing cost of ₦948 per litre, total spending on PMS imports reached ₦2.42tn in just 70 days, following ₦4.51tn spent between October 2024 and February 2025.
Dangote has long accused some international oil companies of withholding crude supplies from his refinery in breach of the domestic supply obligation. He also alleged that the NMDPRA was issuing import licences for substandard petroleum products, prompting him to seek legal redress to halt such authorisations—a case that remains in court.
At a recent investor forum in Lagos, Dangote reiterated that the sabotage is largely from long-time oil import beneficiaries, not the Nigerian National Petroleum Company Limited (NNPCL). He insisted he would prevail, saying, “I’ve been fighting all my life, and I’m 100 per cent sure I will win.”
However, despite his concerns, official data suggests that fuel imports have dropped significantly. NMDPRA statistics indicate a decline from 44.6 million litres per day in August 2024 to 14.7 million litres by April 13, 2025—a 67% drop—thanks to growing supply from the Dangote, Port Harcourt, and modular refineries. Even the NNPCL has shifted away from foreign purchases, now sourcing products locally.
Still, stakeholders offer mixed reactions. National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, stressed the need for a level playing field. “There should be no conflict. Let everyone operate freely. Competition is normal, but it should be healthy,” he said.
Chinedu Ukadike, National Publicity Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), echoed similar sentiments. “Competition is part of business. Dangote has slashed prices, which sometimes affects our strategy, but we support his efforts to ease Nigerians’ burden.”
Meanwhile, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has raised concerns over a potential monopoly. Its Executive Secretary, Mr. Olufemi Adewole, denied the existence of a “cabal” but acknowledged the presence of vested interests. He explained that depot owners who invested billions to sustain fuel supply now fear being sidelined.
He warned that Dangote’s dominance, if unchecked, could disrupt market stability. “Stopping fuel imports now would be dangerous. Dangote hasn’t met current demand, and private depots still carry the bulk of supply,” Adewole said. He added that the refinery’s selective sales strategy—preferring gantry sales over bulk loading—limits depot access.
DAPPMAN also expressed frustration over post-gantry price cuts, which force marketers to absorb losses quietly. Adewole further explained that pricing complexities—ranging from crude costs to logistics—combined with high capital and financing requirements, make depot operations difficult. “Importing 20,000 metric tons of fuel costs over ₦20bn, mostly funded by high-interest bank loans,” he noted.
The situation underscores an evolving battle for market control, as Nigeria’s refining capacity grows and stakeholders push for balance between competition, regulation, and national energy security.
