DAPPMAN, Dangote feud deepens over fuel quality, pricing

16 Sept 2025

By Olakunle Oke

Tensions are escalating in Nigeria’s petroleum sector as Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) trade accusations over fuel quality, pricing, and alleged economic sabotage.

In a fiery press statement, Dangote Industries Limited vehemently denied DAPPMAN’s claims, accusing the association of resisting local refining to protect its import-dependent profits.

Dangote’s rebuttal, titled “Response to DAPPMAN’s Misleading Press Statement,” directly challenges the marketers, alleging they have engaged in practices that undermine Nigeria’s energy self-sufficiency.

The refinery stated that its operations have already driven down diesel prices from ₦1,900 to ₦1,000 per litre, supplying a significant portion of the national demand.

The company accused DAPPMAN of prioritizing personal gains over national welfare and called for stronger partnerships to improve domestic logistics.

The statement also brought up past incidents of alleged poor-quality imports, referencing a case where DAPPMAN members supposedly imported adulterated fuel containing 15% methanol.

Dangote claimed this product caused widespread engine damage and health risks, yet there were no independent investigations, highlighting regulatory failures in the sector.

Dangote also challenged Nigeria’s official daily fuel consumption figures, calling them “grossly exaggerated.”

The company stated that actual usage is less than half the widely cited figure of 93 million litres per day.

According to the statement, these inflated statistics have been used to justify massive subsidy claims, product diversion, and other fraudulent activities that have cost the nation billions. The refinery urged a forensic audit of consumption data and financial records of key operators to uncover these discrepancies.

The statement criticized DAPPMAN’s business model, which it claims favors importing costlier fuels to exploit arbitrage opportunities. Dangote advocated for stricter enforcement of the Petroleum Industry Act (PIA) and a clearer pricing structure to prevent smuggling.

In a related development, Dangote Refinery announced it would begin supplying petrol directly to filling stations across Nigeria at a gantry price of ₦820 per litre.

With 1,000 trucks mobilized for distribution, the company is aiming to ease fuel scarcity and shift away from a reliance on imports.

Dangote concluded by reaffirming its commitment to Nigeria’s energy independence, urging all stakeholders to prioritize national interests over personal gain.

In its own press statement over the weekend, DAPPMAN expressed dismay over the ongoing tensions between the Dangote refinery and the National Union of Petroleum and Natural Gas Workers (NUPENG).

DAPPMAN’s Executive Secretary, Olufemi A. Adewole, stated that the association felt compelled to clarify “inaccurate or misleading claims” being made public, which could “diminish the collective contributions of other players”.

DAPPMAN countered the claim that Nigeria’s fuel stability rests on one refinery, stating that Dangote’s contribution has peaked at only 30-35% of national demand, with the remainder supplied by marketers under strict regulatory oversight.

The association highlighted its members’ decades-long role in ensuring uninterrupted fuel access across the country.

The marketers also challenged the timing of Dangote’s fuel price reductions, calling them “strategically timed” to create “price shocks that undermined competition” for other importers.

DAPPMAN also alleged that Dangote offers lower prices to international buyers than to local off-takers, which contradicts its claims of prioritizing Nigerians.

DAPPMAN rejected any insinuation that its members deal in substandard products, stating that all imports are subjected to accredited laboratory testing.

In a counter-allegation, DAPPMAN claimed that the Dangote refinery has on multiple occasions sought waivers to distribute products with sulphur levels above approved thresholds.

The association also called the refinery’s claim of free delivery misleading, stating that marketers are required to use Dangote-owned trucks and pay commercial rates based on the destination, which imposes additional financial burdens.

The statement concluded by emphasizing that Nigeria’s downstream sector is a complex ecosystem of multiple stakeholders, not just one facility, and called for cooperation, regulatory compliance, and mutual respect to ensure a stable energy future.