The face-off between Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has deepened, following fresh accusations over an alleged ₦1.5 trillion subsidy demand.
The dispute began after Dangote claimed that petroleum marketers, under the DAPPMAN umbrella, had asked the refinery to grant discounts amounting to ₦75 per litre in order to cover coastal freight, port charges, and other logistics costs. According to the refinery, the request—if implemented—would translate into a staggering ₦1.505 trillion annual subsidy.
Dangote Rejects Marketers’ Demands
In a strongly worded statement, Dangote Refinery dismissed what it described as an “unrealistic and dangerous” request. The company argued that bowing to DAPPMAN’s demands would reintroduce a subsidy regime that Nigeria is struggling to end.
“Granting such a demand would cripple our operations and push Nigeria back into the subsidy trap that has cost the country trillions of naira in the past,” the refinery insisted.
Dangote also accused some marketers of preferring imports to local refining, noting that while the refinery exported 3.23 million metric tonnes of petroleum products between June and September, marketers imported 3.69 million metric tonnes in the same period. The company described this as a form of “dumping” that undermines Nigeria’s economic interest.
DAPPMAN Pushes Back
DAPPMAN has, however, denied Dangote’s claims, insisting that marketers never demanded subsidies. Instead, the association accused the refinery of unfair trade practices—alleging that Dangote offers foreign traders discounts while denying Nigerian marketers equal access to products.
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In a counter-statement, DAPPMAN demanded a retraction of the allegations within seven days, threatening to take legal action if Dangote fails to provide evidence.
“We categorically reject these accusations. No such subsidy demand was made. The refinery must either prove its claims or face us in court,” the marketers warned.
Implications for Fuel Prices
The tussle between Dangote Refinery and DAPPMAN has raised fears of a possible hike in pump prices. Marketers had earlier suggested that the refinery should add ₦75 per litre to its current gantry price before they could lift products, a move that could directly affect ordinary Nigerians at the filling stations.
Industry watchers say the outcome of this clash will determine whether Nigeria moves toward stable local refining or returns to the subsidy controversies of the past.
A Brewing Industry Showdown
With Dangote daring marketers to take the case to court, and DAPPMAN insisting on equal treatment, the standoff is set to test the strength of Nigeria’s downstream petroleum regulations. The Federal Government may soon be forced to intervene to prevent fuel scarcity or further escalation of prices.
For now, the Dangote Refinery DAPPMAN subsidy demand dispute remains one of the most heated battles in Nigeria’s energy sector, with billions of naira—and the future of fuel pricing—hanging in the balance.