The rift between the Depot and Petroleum Products Marketers Association of Nigeria and the Dangote Group has escalated sharply, with DAPPMAN threatening to take legal action if the refinery giant does not retract allegations of product diversion. The development comes at a time when Nigeria’s downstream petroleum sector is gripped by tension over pricing, supply, and competition.
Also on Wednesday, the National Industrial Court in Abuja restrained the Nigeria Union of Petroleum and Natural Gas Workers and the Direct Trucking Company Drivers Association from embarking on strike actions or blockades that could disrupt the operations of the Dangote refinery, MRS Oil Nigeria Limited, and MRS Oil and Gas Company Limited.
The clash between the refinery and DAPPMAN follows claims by the Dangote Group that some marketers were exploiting discounted purchases from its refinery under the guise of domestic supply but diverting the products to neighbouring countries where pump prices are nearly double.
Dangote described the alleged scheme as a long-running drain on Nigeria’s resources and insisted it would not be complicit. It also declared that any party who feels aggrieved by the contents of the publication is entitled to seek redress through the appropriate legal channels, without recourse to a seven-day notice.
In a strongly worded statement on Wednesday, DAPPMAN rejected the allegations outright, describing them as damaging to both industry players and government regulators. The association said it had given Dangote seven days to either present verifiable evidence of the alleged diversion or withdraw the claims. Failure to do so, it warned, would trigger legal action.
“We challenge the Dangote refinery to present verifiable evidence that DAPPMAN members are diverting products to neighbouring countries. Smuggling is a national security matter. If any member is complicit, let the relevant agencies act. Otherwise, this allegation must be retracted within seven days, or we reserve the right to seek legal redress,” the association stated.
Earlier in the week, Dangote had issued a blistering statement alleging widespread fraud in the sector, claiming entrenched cartels had for years manipulated Nigeria’s import and subsidy framework at great cost to the country. The group challenged DAPPMAN to support an independent forensic audit of its import records over the last five years to confirm whether subsidy payments and equalisation claims matched real daily consumption levels.
According to Dangote, the marketers’ true objective was to exploit discounted refinery prices while profiteering from cross-border sales. “The strategy remains the same: purchase from the refinery at discounted rates under the guise of domestic supply, then divert those products to neighbouring countries where pump prices are nearly double. This well-worn tactic has drained Nigeria’s resources for years, and the Dangote Petroleum Refinery will not be complicit,” the statement read.
The feud has erupted just days after Dangote slashed petrol prices, intensifying an ongoing price war. DAPPMAN, however, insisted that the recent decline in fuel pump prices was not the refinery’s doing but a result of broader market forces. It attributed the price reduction to a stronger naira, falling crude oil prices, and ongoing fiscal and monetary reforms.
The association noted that the naira had traded between N1,500 and N1,550 per dollar since the first quarter of 2025, while Brent crude had dropped from $92 to $76 per barrel. These shifts, it argued, were the real reasons behind lower pump prices, not Dangote’s pricing strategy.
DAPPMAN further accused the Dangote refinery of seeking to monopolise Nigeria’s downstream market while simultaneously benefiting from open export opportunities abroad. The association said the refinery had exported petroleum products to the United States and other advanced economies with established refining industries. “If such countries had adopted restrictive practices, these opportunities would not have existed. Nigeria must uphold competition, not abandon it,” the group stated.
It also raised concerns that Dangote was offering discounts of over $40 per metric tonne to foreign traders while allegedly restricting access to Nigerian marketers. DAPPMAN criticised the refinery for denying local operators coastal vessel loading rights, forcing them to rely on offshore Lomé—a recognised West African trading hub—for transactions.
Moreover, the association accused Dangote of attempting to undermine the vast infrastructure of independent marketers, who collectively manage hundreds of depots and thousands of retail stations across the country. It also expressed worry over the refinery’s plan to deploy 4,000 compressed natural gas trucks, warning of potential road safety challenges.
DAPPMAN emphasised that Dangote’s allegations not only smeared marketers but also cast aspersions on regulatory agencies, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Customs, and border control agencies. It argued that such claims could weaken public trust in institutions that the Tinubu administration is strengthening under its reform agenda.
“DAPPMAN does not control labour unions or other industry associations and has no business interfering in their decisions. Our role has been one of de-escalation, focused on averting disruption to fuel supply and national mobility,” the group added, dismissing claims it had sponsored recent union strikes.
The association reaffirmed its support for deregulation, transparency, and competition but vowed to resist what it described as attempts to create a monopoly under the guise of patriotism.
Court blocks NUPENG
In a parallel development, the National Industrial Court in Abuja restrained the Nigeria Union of Petroleum and Natural Gas Workers and the Direct Trucking Company Drivers Association from embarking on strike actions or blockades that could disrupt the operations of the Dangote Refinery, MRS Oil Nigeria Limited, and MRS Oil and Gas Company Limited.
Justice E.D. Subilim granted the interim injunction on Wednesday following a motion ex parte filed by the refinery’s legal team, led by Senior Advocate of Nigeria, George Ibrahim.
The order also prohibited the unions from blocking roads or compelling truck drivers to participate in industrial action. The ruling comes after NUPENG had last week shut down depots and the refinery in protest, alleging that Dangote was employing drivers for its CNG trucks while denying them the right to unionise.
The dispute between Dangote and DAPPMAN highlights deepening tensions in Nigeria’s downstream oil sector as the country navigates reforms, subsidy removal, and market liberalisation. With Dangote’s 650,000 barrels per day refinery now operational, the dynamics of supply, pricing, and competition are rapidly shifting.
While the refinery promises to reduce Nigeria’s dependence on fuel imports, industry stakeholders warn that unchecked monopoly power could destabilise existing players who have long anchored distribution nationwide. At the same time, the government faces pressure to ensure that reforms deliver both transparency and affordability for consumers.
For now, the countdown to DAPPMAN’s seven-day ultimatum continues, setting the stage for either a legal showdown or a negotiated settlement. What remains clear is that Nigeria’s petroleum sector—long plagued by opacity, rent-seeking, and inefficiency—is entering a new era where competition, regulation, and transparency will determine its future.
Dangote responds
Meanwhile, the Dangote refinery said it stands by its statement. The company emphasised that any party who feels aggrieved by the contents of the publication is entitled to seek redress through the appropriate legal channels, without recourse to a seven-day notice.
“We are fully prepared to defend our position and to present all relevant supporting documents as required. We wish to clarify that the crux of DAPPMAN’s sustained attacks on Dangote Petroleum Refinery stems from their demand for an annual subsidy of N1.50tn to enable their members to match the refinery’s gantry prices at their own depots.
“While we offer petroleum products to marketers at our gantry price, DAPPMAN insists on receiving products via coastal logistics, an option that would add N75 per litre in additional costs. Based on projected daily consumption volumes of 40 million litres of Premium Motor Spirit and 15 million litres of Automotive Gas Oil, this amounts to an additional annual cost of N1,505,625,000,000, which they are effectively asking us to absorb or pass on to Nigerians,” Dangote said in a reply.
It added that the marketers are demanding that it should 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 the refinery to their depots in Apapa and sell at the same price as its gantry.
“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 N1.5tn, a practice that historically defrauded the Federal Government for many years. DAPPMAN and other marketers are welcome to lift products directly from our gantry and benefit from our logistics-free initiative.
“The Dangote Petroleum Refinery has sufficient capacity to meet domestic demand and support exports. We consistently maintain a closing stock of 500 million litres of refined products in our tanks each month. Between June and September, the refinery exported a total of 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes over the same period, an action that amounts to dumping, which is detrimental to the Nigerian economy and the well-being of its citizens,” the statement explained.
The Dangote refinery said it remains steadfast in its support for the reform initiatives of President Bola Tinubu. “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.
“We enjoy strong working relationships with government agencies and remain committed to supporting their efforts, while not hesitating to hold institutions accountable where necessary. 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,” the statement read.
