Dangote Petroleum Refinery has disclosed that the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) demanded an annual subsidy of N1.505 trillion to enable members to match the refinery’s gantry prices at their own depots.
The refinery disclosed in a statement that although it offers petroleum products to marketers at its gantry price, DAPPMAN insists on taking delivery via coastal logistics, an option that would add N75 per litre in extra costs. Based on 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 effectively asked the refinery to absorb or pass on to Nigerians.
“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.
“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.”
The refinery alleged that its refusal to comply with DAPPMAN’s subsidy request is the core reason behind recent public criticisms and attacks. It reiterated that the refinery has sufficient capacity to meet domestic demand and support export as it consistently maintains a closing stock of 500 million litres of refined products in its 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 wellbeing of its citizens,” it said.
Reaffirming its commitment to supporting the reform agenda of President Bola Ahmed Tinubu, the refinery stated that through various strategic interventions, it has helped stabilise the Naira, cushion the effects of fuel subsidy removal, position Nigeria as a refining hub, boost foreign exchange earnings, and create employment opportunities across multiple sectors.
“We enjoy strong working relationships with government agencies and remain committed to supporting their efforts, while not hesitating to hold institutions accountable where necessary.
“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,” it noted.
The Refinery also reaffirmed its position regarding its recent statement on the DAPPMAN, which was published on Monday, September 15, in several national dailies and reputable online platforms.
The refinery stressed that any party aggrieved by the content of the publication is free to seek redress through appropriate legal channels. It noted that it would not be swayed by threats or so-called seven-day ultimatums and is fully prepared to defend its position through all legitimate means.
Reacting to Dangote Refinery’s allegations of product diversion by its members, DAPPMAN had issued a seven-day ultimatum to the refinery to either retract the allegation or provide documented proof.
“If neither occurs, we reserve the right to seek legal redress,” the group stated, challenging Dangote Refinery to present verifiable evidence that DAPPMAN members are diverting products to neighbouring countries.
“Smuggling is a national security matter. If any member is complicit, let the relevant agencies act,” DAPPMAN submitted, adding that it does not seek conflict, but seeks a petroleum market where all players follow the same rules; consumers benefit from efficiency and choice; and supply is diversified, safe, and competitive.
“We will resist any attempt to create a monopoly masked as patriotism,” said DAPPMAN, even as it rejects statements made by the Dangote Petroleum Refinery in its press release of September 15, 2025.
As an association representing legitimate depot owners and marketers in Nigeria’s deregulated downstream sector, we are compelled to correct the record and address claims that threaten the integrity of our industry, mislead the public, and undermine regulatory confidence.
“We categorically state that our members, including Matrix, AA Rano, AYM Shafa, and NIPCO are fully tax compliant as we are not aware of any pending cases or disputes against them for default in their tax obligations.”
While denying sponsoring or supporting NUPENG’s proposed industrial action as its role has been one of de-escalation, focused on averting disruption to fuel supply and national mobility, DAPPMAN accused Dangote Refinery of offering 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.”
On product quality allegations, the group declared: “Dangote’s claims that DAPPMAN members import fuels with sulphur levels above 50ppm contradict its own operational record. The refinery itself applied for waivers from NMDPRA to distribute high-sulphur products, in direct contravention of PIA Section 317(11). We challenge the refinery to publicly deny this.”
DAPPMAN went further: “DAPPMAN members operate hundreds of depots and thousands of filling stations across Nigeria. NARTO manages a fleet of over 30,000 trucks.
“This national infrastructure cannot depend on a single supply source or be replaced by a one-location refinery. Attempts to do so signal a deliberate push toward monopolization.
We reject statements that belittle the infrastructure and investment of marketers and distributors as ‘mere assets’. Such remarks are disrespectful to the hundreds of billions invested by Nigerian entrepreneurs over decades.
“Every player in the value chain, refiners, bulk traders, depot operators, transporters, and retailers, has a defined and vital role. Demanding that marketers build refineries betrays a lack of understanding of modern petroleum economies.
“While DAPPMAN supports the introduction of CNG trucks as a cleaner energy initiative, safety cannot be compromised. The Dangote Group has a well-documented history of fatal road crashes linked to poorly trained or unsupervised drivers. Only weeks ago, Nigerians mourned the lives lost in tragic accidents involving Dangote cement trucks across multiple states.
“Adding 4,000 new trucks to Nigeria’s already strained road network without mandatory training, retraining, and safety audits only heightens the risk of further tragedies, this time involving highly flammable petroleum products.
“We therefore call on the FRSC, insurance industry, and relevant regulators to conduct a comprehensive audit of Dangote’s transport operations and road safety record. Mandatory driver vetting and retraining must be a precondition before widespread deployment of these trucks.
“Residents along major corridors, such as the Lekki-Epe Expressway, are already experiencing worsening congestion and road wear due to increased truck traffic. Without immediate intervention, the risks to lives, property, and public infrastructure will escalate.”