The management of Dangote Refinery has challenged the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and any other party dissatisfied with its recent publication on fuel subsidy claims by marketers to seek redress through the appropriate legal channels, rather than resorting to ultimatums.
The refinery’s management, in a statement on Wednesday, September 17, said it is prepared to defend its position in court over the matter.
The refinery said the crux of the controversy between it and DAPPMAN is the demand by DAPPMAN for an annual subsidy of ₦1.505 trillion to enable depot owners to match the refinery’s gantry prices at their own depots.
It said DAPPMAN is insisting on receiving refined petroleum products through coastal logistics, an option that would come with an additional cost of ₦75 per litre.
“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,” the refinery stated.
“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.”
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The refinery firmly rejected the request to absorb the logistics costs, which it described as an unjustified “subsidy” demand. It asserted that its sales are conducted at the gantry based on production costs plus regulated margins, with no hidden subsidies. It emphasised that the federal government abolished fuel subsidies in May 2023, and it cannot be coerced into reintroducing such a regime.
“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,” it stated, adding that DAPPMAN and other marketers are free to lift products at its gantry and benefit from its free logistics initiative.
Dangote reiterated its capacity to meet domestic demand and support export, adding that it has consistently maintained a closing stock of 500 million litres of refined products in tanks each month.
The $20 billion refinery disclosed that it exported 3.23 million metric tonnes of petrol, diesel and aviation fuel between June and September 2025, while marketers imported 3.69 metric tonnes over the same period, which it described as “dumping” because it is detrimental to the Nigerian economy and the well-being of its citizens.
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The company re-emphasised its commitment to supporting the reform initiatives of President Bola Tinubu administration. “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,” it stated.
The 650,000 barrels per day refinery insisted that while collaborating with government agencies in pursuing development goals, it would not hesitate to hold institutions accountable where necessary to avoid actions that could undermine the economy.
“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,” the statement added.
On its part, DAPPMAN argued that distributing products from Dangote’s Lagos-based refinery to other parts of Nigeria incurs significant logistics costs, including coastal shipping, NIMASA, NPA, and vessel pumping charges. Marketers insist that Dangote should discount these costs to align depot prices with the refinery’s gantry rates. DAPPMAN also denied allegations of product diversion and challenged Dangote to provide evidence, threatening legal action if false claims are not retracted.
Mutual Allegations and Legal Threats
The conflict between Dangote Refinery and DAPPMAN has escalated into a public war of words, with both parties threatening legal recourse. DAPPMAN earlier accused Dangote of offering preferential treatment to foreign traders by providing discounts of over $40/MT while restricting Nigerian marketers to gantry lifting. In return, Dangote Refinery accused DAPPMAN of seeking a subsidy that “historically defrauded the Federal Government” and alleged that marketers are engaged in smuggling and diverting products to neighbouring countries. DAPPMAN denied and issued a 7-day ultimatum for Dangote to retract its allegations or face legal action.
The dispute with DAPPMAN followed recent controversy between Dangote Refinery and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) which led to strike over welfare and job security issues.
Experts believe that the dispute between Dangote Refinery and DAPPMAN underscores deeper structural issues in Nigeria’s downstream petroleum sector, including logistics challenges, distribution inefficiencies, and lingering tensions from subsidy removal.
The outcome could set significant precedents for Nigeria’s deregulated market. To resolve the problem, industry stakeholders have called for collaborative efforts involving government agencies, regulators, and all stakeholders to address systemic challenges.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
