By Damilare Adeleye
The Centre for the Promotion of Private Enterprise (CPPE) has kicked against claims alleging that the Dangote Refinery possesses monopolistic tendencies.
The think tank argued that Nigeria should focus on strengthening its local refining capacity instead of adopting policies that encourage large-scale fuel importation.
In a statement issued on Sunday and signed by its Chief Executive Officer, Dr. Muda Yusuf, the CPPE said the country’s long-standing dependence on imported petroleum products has inflicted serious damage on the economy, weakened the naira, and intensified pressure on foreign exchange reserves.
The group maintained that government policies should be directed toward protecting and expanding domestic refining investments, rather than exposing local investors to harsh import competition and policy instability.
According to the CPPE, decades of fuel import dependence have drained national resources, exported jobs and industrial opportunities, and created severe distortions within the economy.
“Attempts to portray the Dangote Refinery as a monopolistic threat are simplistic, fundamentally flawed, and grossly unfair. The refinery did not prevent other investors from entering the sector, nor did it cause the collapse of state-owned refineries. It simply undertook an extraordinary industrial investment at a scale unprecedented in Africa,” the statement read.
The organization noted that Nigeria’s over-reliance on imported refined products has worsened foreign exchange illiquidity and deepened corruption within the fuel subsidy framework.
“For decades, Nigeria’s dependence on imported petroleum products created deep distortions within the economy. It exerted enormous pressure on foreign reserves, weakened the naira, accelerated the collapse of domestic refineries, entrenched a rent-seeking ecosystem, worsened FX illiquidity, fueled corruption within the subsidy regime, and imposed severe fiscal burdens on public finances,” the CPPE stated.
The economic advocacy group described the Dangote Refinery project as one of the most significant industrial investments ever undertaken in Africa, adding that the emergence of modular refineries across the country represents a critical shift toward local industrial development.
“Nigeria has just witnessed one of the most consequential industrial investments in Africa through the establishment of the Dangote Refinery, alongside growing investments in modular refineries across the country. These investments should ordinarily be strategically supported, celebrated, and strengthened,” it added.
The CPPE, however, expressed concern over what it described as increasing pressure for the unrestricted importation of refined petroleum products, warning that such a policy direction could undermine local refining investments and discourage future investors.
“Instead, there appears to be mounting pressure for the unrestricted importation of refined petroleum products — a policy orientation capable of undermining domestic refining investments and discouraging future industrial commitments,” the statement added.
The organization recalled that the former fuel subsidy regime consumed trillions of naira annually, while petroleum imports reportedly exceeded $10 billion each year during peak periods.
It argued that true competition in the downstream oil sector should come from the establishment of more domestic refineries rather than a continued reliance on imported products.
The CPPE further noted that countries across the world often provide strategic industries with fiscal support and protective policies to encourage growth and long-term economic stability.
It added that large industrial projects naturally improve competitiveness through economies of scale, lower production costs, stronger supply chains, and increased economic resilience.
Despite being one of Africa’s leading crude oil producers, Nigeria relied heavily on imported refined petroleum products for decades due to the collapse and poor performance of state-owned refineries.
The group noted that the commencement of operations at the Dangote Refinery, alongside investments in modular refineries, signals a major transition toward local refining and reduced import dependence.
The CPPE reiterated that the refinery merely filled an investment gap in the sector and did not prevent other operators from establishing refineries in the country.