DAPPMAN Denies Demanding N1.5trn Fuel Subsidy from Dangote

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has denied demanding N1.505 trillion annual subsidies on petroleum products from Dangote Refinery.

DAPPMAN spokesperson, Ikem Ohia, who featured on Channels Television’s Morning Brief on Wednesday, said marketers have been in negotiation with Dangote, and they are only calling on the refinery to make products accessible at a reasonable price.

Ohia said: “We don’t know where he (Dangote) arrived at that. The point is that he who alleges should prove. It is completely ridiculous. We are businessmen; he is a businessman. We are not asking for anything like a subsidy. We went into negotiation, and we are still in negotiations with him to see whether he can bridge that gap.”

The DAPPMAN spokesperson refuted claims of a rift with the refinery, stressing that marketers are only seeking a business condition that guarantees regular supply at affordable rate.

According to him, refineries have different modes of product sales which include wholesale (bulk sales which they are angling for) and ex-gantry (more like retailing).

He said DAPPMAN members were not part of the cabals fighting Dangote, noting that they had reached out to him when the refinery commenced production, seeking collaboration and be able to take products in bulk, but an agreement has not been reached.

He said Dangote instead, prefers to deal with a few marketers as partners.

“What we are requesting and believe would help the country is to have an open door policy. You don’t have to select,” he stated.

While stating that they do not doubt the capacity of Dangote Refinery, Ohia insisted that the supply so far does not meet the entire needs of the market. He argued that efficient distribution across the country can only be guaranteed through bulk supply to marketers not the gantry model.

He said global practice shows that refineries usually rely on bulk supply to off-takers alongside retail sales.

“Ideally, refineries emphasise bulk evacuation through off-takers who can lift massive quantities and allow continuous production. Relying only on retail gantry sales cannot meet national demand,” he stated.

While depot owners seek supply through coastal logistics, Dangote rejected it, stating that it would amount to an additional cost which it was not ready to pass on to consumers.

The refinery maintained that the marketers should lift products through its gantry.

Ohia dismissed claims that Dangote’s direct distribution initiative would make products available and cheaper for Nigerians, insisting that the company is moving towards monopolising the market.

Dangote came up with the direct distribution initiative and invested in deploying 4,000 CNG-powered trucks to facilitate it.

Marketers kicked against it, arguing that the approach could give the refinery too much control of the downstream sector.

Ohia also refuted Dangote’s allegation that DAPPMAN members were diverting petroleum products to neighbouring countries, challenging him to prove it.

As the controversy continued, billionaire businessman, Femi Otedola, on Tuesday, urged DAPPMAN to review their business model and align with prevailing market realities influenced by the entry of Dangote refinery.

Otedola advised them to restructure and invest in the last-mile distribution value chain or even consider taking over the Port Harcourt Refinery rather than opposing Dangote’s model.

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Victor EZEJA

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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. He can be reached via @VICTOREZEJA on X