Friday, April 24th 2026

Dangote Refinery, DAPPMAN Trade Accusations Over Product Diversion, Subsidy Demand


Dangote Refinery, DAPPMAN Trade Accusations Over Product Diversion, Subsidy Demand
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The standoff between the Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has deepened, with both parties exchanging sharp statements over allegations of product diversion, subsidy demands, and anti-competitive practices.

On Wednesday, DAPPMAN issued a seven-day ultimatum to the refinery to retract its claim that marketers were diverting petroleum products to neighbouring countries or face legal action. The association argued that the allegation not only cast aspersions on its members but also questioned the integrity of key regulators such as the Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA), Customs, and border authorities.

“This not only undermines public confidence in these institutions but also poses a subtle threat to the Tinubu administration’s reform agenda,” DAPPMAN said, stressing its support for deregulation and competition.

Responding in a late-night statement, the Dangote Refinery dismissed the ultimatum, maintaining that it was ready to defend its position in court. It alleged that DAPPMAN’s recent criticisms were linked to its refusal to grant what it described as a hidden subsidy request of ?1.505 trillion annually.

According to the refinery, marketers had insisted on taking delivery of products via coastal logistics — an arrangement that adds ?75 per litre in extra costs — and asked Dangote to absorb or pass on the cost to Nigerians. “We have no intention of increasing our gantry price to accommodate such demands, nor are we willing to pay a subsidy of over ?1.5 trillion, a practice that historically defrauded the Federal Government,” the statement read.

The refinery further disclosed that between June and September 2025, it exported 3,229,881 metric tonnes of refined products, while marketers imported 3,687,828 metric tonnes, describing the move as dumping, harmful to the economy, and undermining domestic refining capacity.

Reaffirming its support for President Bola Tinubu’s reforms, Dangote Petroleum Refinery said it continues to play a key role in stabilising the naira, cushioning the effects of subsidy removal, and positioning Nigeria as a refining hub.

“Dangote Petroleum Refinery remains firmly committed to the progress and well-being of Nigeria, and is open to partnerships with patriotic and responsible stakeholders in pursuit of national development,” it said.

 

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