Clarifying the role of market players in Nigeria’s downstream petroleum sector
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has watched with dismay the unfolding tensions between the Dangote Petroleum Refinery and the National Union of Petroleum and Natural Gas Workers (NUPENG).
While the matter may not directly concern our Association, we are alarmed by the tone, trajectory, and escalation of this issue. Beyond the reputational risks to various market participants, we are deeply concerned about the potential impact this may have on ordinary Nigerians, particularly in a downstream environment still stabilizing post-deregulation.
As responsible and long-standing stakeholders in Nigeria’s downstream sector, we feel compelled to provide clarity on several inaccurate or misleading claims made in the public space — claims which, if left unchecked, could mislead the public and diminish the collective contributions of other players that have ensured national fuel availability for decades.
The assertion that Nigeria’s downstream stability rests solely on one refinery is misleading and dismissive of the broader ecosystem. While we welcome the Dangote Refinery as a major infrastructure project, its contribution has peaked at only 30 to 35 percent of national demand. The balance continues to be supplied by responsible petroleum product marketers, including DAPPMAN members, who import and distribute under strict regulatory oversight by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
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For decades, DAPPMAN marketers have ensured uninterrupted fuel access across the country, investing in depots, trucking fleets, retail networks, and logistics and doing so even through periods of forex pressure, subsidy transitions, insecurity, and economic downturns. These contributions deserve recognition, not erasure.
Claims that repeated fuel price reductions by the Dangote Refinery are patriotic gestures ignore their timing and market impact. These reductions were often strategically timed when other importers had active cargoes at sea or in tank, creating price shocks that undermined competition and imposed financial strain on fellow market participants, including the refinery’s own domestic customers. Even more concerning is the refinery’s pattern of offering lower prices to international buyers while quoting higher rates to local off takers. This contradicts public-facing claims of prioritizing Nigerians and places unnecessary burden on domestic businesses already operating under tight margins.
We reject any insinuation that DAPPMAN members deal in “substandard” petroleum products. All imports are subject to independent, regulator-accredited laboratory testing in accordance with NMDPRA protocols and global quality standards. Ironically, the same refinery alleging superiority has on multiple occasions sought waivers to distribute products with sulphur levels above approved thresholds, a fact that calls into question its consistency and credibility on product quality. Nigeria’s downstream petroleum market is highly regulated, transparent, and aligned with international best practices. Attempts to cast doubt on the integrity of other compliant players are unfair and inaccurate.
The claim that the refinery offers “free delivery” is also misleading. In reality, marketers are required to lift at least 25 percent of their allocations directly from the refinery gantry and must do so using only Dangote-owned trucks, paying commercial rates based on their destination. This arrangement imposes additional logistical and financial burdens on marketers, limits operational flexibility, and undermines the narrative of cost relief being provided to the local market.
The Dangote Refinery is a valuable contributor, but it is not a messiah. Nigeria’s downstream sector is not driven by one facility alone. It is powered by an ecosystem of refiners, depots, marketers, transporters, and regulators, working in tandem to ensure nationwide access to fuel under often difficult circumstances. We caution against narratives that monopolize credit, shift blame, or undermine the confidence of investors, partners, and the public.
DAPPMAN reaffirms its commitment to the principles of competition, transparency, and collaboration in Nigeria’s downstream petroleum industry. We call on all parties, including the Dangote Refinery to engage constructively and communicate responsibly, avoiding one-sided accounts that can destabilize market confidence. The future of Nigeria’s energy sector lies not in divisive narratives, but in cooperation, regulatory compliance, and mutual respect.
