The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has opposed any move to restrict petroleum imports, warning against a potential monopoly in the downstream sector. They expressed concern over the growing dominance of Dangote Refinery, stating it could destabilize the market. DAPPMAN’s Executive Secretary, Olufemi Adewole, emphasized that private depot owners have been crucial in maintaining steady fuel distribution, noting that Dangote Refinery is currently unable to meet even reduced domestic demand.
DAPPMAN’s Executive Secretary, Olufemi Adewole, warned that halting fuel importation now would be “chaotic” and “dangerous,” advocating instead for a phased approach once multiple domestic refineries are operational. He raised strong concerns about a potential monopoly in the downstream petroleum sector, citing Dangote Refinery’s massive capacity and market influence as a “clear and present danger” that could allow it to manipulate prices and dominate supply.Olufemi Adewole praised regulators for upholding the Petroleum Industry Act (PIA) and promoting a free market, noting their role in preventing monopolies.
He cited Dangote’s recent lawsuit against the regulatory authority as evidence of its monopolistic intentions. Adewole emphasized that the fear of monopoly is real and said DAPPMAN is working with stakeholders and regulators to prevent it.Adewole commended the regulatory authority for upholding the Petroleum Industry Act but criticized Dangote Refinery’s legal challenge against the regulator’s power to issue import licenses, calling it a sign of monopolistic intent. He alleged that DAPPMAN members are denied fair access to purchase products, as Dangote favors select marketers through gantry sales over bulk depot loading. He also noted that sudden price cuts after dispatch have caused losses for marketers.
Adewole stated that marketers have quietly endured financial strain to stay afloat, citing the high costs and challenges in depot operations. He explained that pump prices reflect layers of cost—from crude to retail—amplified by outdated equipment and high-interest loans, with importing 20,000 metric tons requiring over N20 billion. He denied the existence of a “cabal” in the sector, as claimed by Dangote, but acknowledged vested interests from depot owners who’ve heavily invested in sustaining fuel supply.Adewole emphasized that DAPPMAN members have long supported the fuel supply chain, investing billions of naira before Dangote’s entry, and deserve fair returns.
He reiterated that there is no cabal, only vested interests. He also noted that despite its large capacity, the Dangote Refinery has yet to meet current domestic fuel demand
