The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and Dangote Refinery engaged in a heated dispute yesterday over claims that DAPPMAN members diverted petroleum products to neighboring countries. DAPPMAN issued a seven-day ultimatum, demanding the refinery retract the allegations or provide verifiable evidence, threatening legal action if neither is done.
In response, Dangote Refinery stood firm, stating that aggrieved parties should seek legal redress without relying on a seven-day notice. The refinery accused DAPPMAN of demanding a N1.5 trillion annual subsidy to align their depot prices with Dangote’s gantry prices, a claim DAPPMAN rejected as misleading.
DAPPMAN, in a 10-point rebuttal, dismissed Dangote’s accusations as factually incorrect, denying any involvement in sponsoring a Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) strike. The association clarified that it does not control labor unions or other industry groups and has worked to prevent fuel supply disruptions. DAPPMAN also attributed recent pump price reductions to a stronger naira, declining global crude prices, and market deregulation, not solely Dangote’s operations.
Addressing allegations of importing high-sulfur fuels, DAPPMAN challenged Dangote to deny seeking waivers from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to distribute such products, which it claimed violates the Petroleum Industry Act (PIA). The association further criticized Dangote for offering discounts to foreign traders while restricting Nigerian marketers to gantry-only lifting, creating arbitrage opportunities.
Dangote countered that DAPPMAN’s demand for coastal logistics would add N75 per liter to costs, totaling N1.505 trillion annually based on projected consumption of 40 million liters of Premium Motor Spirit (PMS) and 15 million liters of Automotive Gas Oil (AGO). The refinery refused to absorb these costs or increase gantry prices, urging marketers to lift products directly from its gantry.
Borno South Senator Ali Ndume defended Dangote, warning against a “coordinated media demonization” of the $20 billion refinery, which he described as a vital asset for reducing Nigeria’s reliance on imported fuel. Ndume criticized past licensees who failed to build refineries despite government incentives, accusing them of unfairly targeting Dangote. He emphasized that the PIA supports fair competition, not protectionism, and hailed the refinery’s 650,000-barrel-per-day capacity as a boost to economic resilience.
The ongoing feud highlights tensions in Nigeria’s deregulated downstream sector, with DAPPMAN defending its members’ integrity and Dangote standing by its claims, as stakeholders navigate the balance between competition and national economic interests.
