Dangote Dares DAPPMAN: “Go to Court”, Alleges Marketers Demanded ₦1.5trn Subsidy

The standoff between Dangote Petroleum Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has deepened, with Africa’s largest refinery daring the association to proceed with its threat of legal action over allegations of product smuggling.

In a statement released Wednesday night, Dangote maintained that it stands by its position and would not be intimidated by DAPPMAN’s seven-day ultimatum to retract its claims or face a lawsuit. The refinery stressed that any aggrieved party was “free to seek redress through appropriate legal channels.”

The rift stems from allegations made by Dangote that petroleum marketers were diverting products to neighbouring countries. DAPPMAN, in a strongly worded response, said the remarks amounted to an indictment of regulatory agencies, including the Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA), Customs, and border agencies, accusing Dangote of undermining confidence in the Tinubu administration’s deregulation reforms.

DAPPMAN issued the refinery a one-week ultimatum to either provide verifiable evidence of the alleged smuggling or retract the claim, warning that it reserved the right to seek legal redress if neither step was taken.

But in a counter-accusation, Dangote alleged that the association had effectively demanded an annual subsidy of ₦1.505 trillion to enable its members to match gantry prices at their depots. The refinery claimed DAPPMAN requested a discount of ₦70 per litre in coastal freight, NIMASA, NPA, and related costs, plus ₦5 per litre for vessel pumping charges—demands Dangote flatly rejected.

“With Nigeria consuming 40 million litres of petrol (PMS) and 15 million litres of diesel (AGO) daily, this amounts to an additional ₦1.505 trillion annually, which DAPPMAN wanted us to absorb or pass on to Nigerians,” the refinery said.

Dangote further accused marketers of preferring coastal logistics—an option that would add ₦75 per litre in extra costs—despite its gantry being open for direct lifting of products, a system it described as a “logistics-free initiative.”

The refinery insisted it would not succumb to subsidy-like arrangements that had historically drained the Nigerian economy. It added that it has maintained a closing stock of 500 million litres monthly and exported over 3.2 million metric tonnes of refined products between June and September, while marketers imported 3.6 million metric tonnes, a move it described as “dumping and detrimental to the economy.”

Reaffirming its alignment with President Bola Tinubu’s reform agenda, Dangote Petroleum Refinery said its operations have supported naira stability, boosted foreign exchange inflows, created jobs, and positioned Nigeria as a refining hub in Africa.

“We enjoy strong relationships with government agencies and remain committed to Nigeria’s progress while holding institutions accountable where necessary,” the refinery noted.

The Dangote Refinery, commissioned in May 2023, remains at the centre of Nigeria’s downstream transformation, even as its clash with DAPPMAN underscores ongoing tensions within the petroleum supply chain.