A Dangote official claimed that oil marketers in Nigeria reported the refinery’s low-priced diesel to the President, causing them to boycott the plant. The refinery struggles to sell 29 tankers of diesel per day due to low local patronage, resulting in most of its diesel and aviation fuel exports. The DAPPMAN group, which was accused by the official, aims to highlight issues in the Downstream Petroleum Industry for urgent intervention to ensure deregulation and free market policies as intended by the PIA 2021.
The Nigerian Executive Secretary, Olufemi Adewole, has written to the President of The Senate, urging for the continuation of deregulation and free market policies in the downstream petroleum industry. The letter highlights issues requiring urgent intervention to ensure the industry’s survival. Adewole also acknowledges the National Assembly’s support for the Dangote refinery, stating that its success would be a pride for Nigerians.
Nigerian business entrepreneurs have invested over N3tn in the country’s downstream petroleum sector, leading to concerns about the Dangote refinery’s monopoly on Automotive Gas Oil supply. The association argues that this monopoly deprives Nigerians of cheaper options and restricts downstream operators from sourcing the product. The association also cites Dangote’s history in other sectors, including cement, sugar, salt production, and noodles, where competing brands have been impacted.
The Dangote Refinery’s AGO has exceeded the Afri 5′ Gasoil and Gasoline specification of sulphur content not exceeding 50/ppm since January 2024, despite local refining capacity being insufficient. This exceeds the average of 50/ppm sulphur required for AGO imports by marketers.
Dangote Oil Refinery has been criticized for adopting the role of sole supplier of AGO to Nigeria, causing harm to downstream operators and the nation. The refinery’s pricing strategy has led to a drop in AGO prices, despite a large inventory of imported AGO. DAPPMAN, a Nigerian trade association, argues that this policy restricts importation of AGO and limits the product source to Dangote refinery. The association also claims that the refinery consistently sells refined petroleum products at lower prices to foreign traders and charges in dollars without a naira option for local marketers.
DAPPMAN has called on the government to remove restrictions on marketers from sourcing products from Dangote Refinery until the Port Harcourt and Warri Refineries are fully rehabilitated. The letter also calls for no monopoly of sourcing and allows marketers to import fuels in line with internationally recognized specifications. DAPPMAN Executive Secretary Olufemi Adewole criticized the Dangote official’s comments and said marketers would still patronize the company.
