A combined photo of Dangote Refinery and DAPPMAN logo
By Victory Oghene
The Dangote Petroleum Refinery on Thursday reaffirmed its stance on the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), insisting that the association’s demands amount to a call for an annual subsidy of N1.505 trillion.
In a statement signed by its management and dated September 17, 2025, the refinery said on the crux of the controversy, it maintained that DAPPMAN’s opposition is tied to demands for subsidies to cover extra logistics costs.
It said, “Dangote Petroleum Refinery stands by its statement on the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), published on Monday, September 15.”
The company further stressed that aggrieved parties should explore legal options rather than issue threats.
“We wish to emphasise that any party who feels aggrieved by the contents of the publication is entitled to seek redress through the appropriate legal channels, without recourse to any so-called seven-day notice. We are fully prepared to defend our position.”
“We wish to clarify that the crux of DAPPMAN’s sustained attacks on Dangote Petroleum Refinery stems from their demand for an annual subsidy of N1.505 trillion to enable their members to match the refinery’s gantry prices at their own depots.”
The statement explained that while products are offered at gantry prices, marketers want delivery through coastal logistics, which would add N75 per litre in costs.
“While we offer petroleum products to marketers at our gantry price, DAPPMAN insists on receiving products via coastal logistics, an option that would add N75 per litre in additional costs. Based on projected daily consumption volumes of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), this amounts to an additional annual cost of N1.505 trillion (N1,505,625,000,000), which they are effectively asking us to absorb and pass it on to consumers. Specifically, the marketers are demanding that we discount N70/litre in coastal freight, NIMASA, NPA and other associated costs as well as N5/litre for the cost of pumping into vessels to enable them to transport products from our refinery to their depots in Apapa and sell at the same price as our gantry.”
The refinery dismissed the request, describing it as a return to fraudulent subsidy practices.
“We wish to make it clear that we have no intention of increasing our gantry price to accommodate such demands, nor are we willing to pay a subsidy of over N1.5 trillion, a practice that historically defrauded the Federal Government for many years. DAPPMAN and other marketers are welcome to lift products directly from our gantry and benefit from our logistics-free initiative.”
On capacity, the company insisted it has the ability to meet both domestic and export demand.
“The Dangote Petroleum Refinery has sufficient capacity to meet domestic demand and support export. We consistently maintain a closing stock of 500 million litres of refined products in our tanks each month. Between June and September, the refinery exported a combined total of 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes over the same period, an action that amounts to dumping which is detrimental to the Nigerian economy and the well-being of its citizens.”
Reiterating support for government reforms, the refinery added: “Dangote Petroleum Refinery remains steadfast in its support for the reform initiatives of President Bola Tinubu. Through various strategic efforts, we have demonstrated our commitment to stabilising the Naira, cushioning the effects of fuel subsidy removal, positioning Nigeria as a refining hub, boosting foreign exchange earnings, and creating employment opportunities among others.
“We enjoy strong working relationships with government agencies and remain committed to supporting their efforts, while not hesitating to hold institutions accountable where necessary.”
The statement concluded with a pledge of loyalty to Nigeria’s growth.
“Dangote Petroleum Refinery remains firmly committed to the progress and wellbeing of Nigeria, and is open to partnerships with patriotic and responsible stakeholders in pursuit of national development.”
Recall that the Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) had alleged through its
Executive Secretary, Olufemi Adewole, that “Dangote sells to international traders at N65 cheaper than what he is selling to us.
He said “In some instances, we were able to buy from those people and still bring it to Nigeria.”
According to Adewole, attempts by local marketers to buy petrol directly from the refinery had proved costlier, sometimes making it more viable to import the product from abroad.
Earlier on Thursday, DAPPMAN tackled Dangote Petroleum Refinery, accusing the company of distortion and attempts to edge competitors out of Nigeria’s downstream oil sector.
“The refinery’s claim that DAPPMAN sponsored NUPENG suggests a fundamental lack of understanding of how Nigeria’s downstream ecosystem works.”
“Stakeholders such as NUPENG, NARTO, PETROAN, MEMAN, IPMAN, and DAPPMAN are independent entities, each with distinct roles and interests. DAPPMAN does not control labour unions or other industry associations and has no business interfering in their decisions.”
“DAPPMAN did not sponsor or support NUPENG’s proposed industrial action. Our role has been one of de-escalation, focused on averting disruption to fuel supply and national mobility.”
On fuel pricing, DAPPMAN said recent reductions were driven by government reforms, a stronger naira, and falling global crude prices, not by Dangote Refinery.
“It is, in fact, the Dangote Refinery that offers discounts of over $40/MT to foreign traders while denying Nigerian marketers access to coastal vessel loading and restricting them to gantry-only lifting. This restrictive access and pricing structure create the very arbitrage opportunity the refinery now criticises.”
The association further challenged Dangote’s claims on fuel quality, supply volumes, and product diversion, insisting the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) remains the only credible custodian of such records.
Raising concerns about safety, DAPPMAN criticised Dangote’s plan to deploy 4,000 new CNG trucks, warning of heightened risks without proper training and regulatory oversight.
Dangote Petroleum Refinery stands by its statement on the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), published on Monday, September 15, in the following national… pic.twitter.com/Muj3kQVEtL
— Dangote Group (@DangoteGroup) September 18, 2025
