The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has raised the alarm over the growing tensions between the Dangote Petroleum Refinery and the National Union of Petroleum and Natural Gas Workers (NUPENG), warning that the dispute could destabilise the nation’s downstream petroleum sector.
DAPPMAN disclosed that contrary to popular belief, the Dangote Refinery currently meets only 30–35 percent of the nation’s fuel demand, leaving the bulk of supply—about 65 to 70 percent—still dependent on other petroleum marketers who import and distribute products across the country.
The association expressed concern over NUPENG’s recent threat of strike action following disputes with Dangote Refinery over its distribution model and the alleged exclusion of truck drivers from union membership. The Department of State Services (DSS) was forced to intervene after negotiations between the union and Dangote management broke down.
DAPPMAN also accused the refinery of engaging in practices that undermine fair competition. It alleged that Dangote strategically times fuel price reductions to coincide with periods when importers have already committed resources to bring in cargoes, thereby causing financial losses to competitors.
The marketers further faulted the refinery for offering lower prices to international buyers while charging domestic off-takers higher rates, contradicting its claims of prioritising Nigerian consumers. They also raised questions about product quality, alleging that Dangote had sought waivers on fuel with sulphur content above approved standards.
On logistics, DAPPMAN dismissed claims of “free delivery” by Dangote, noting that marketers are compelled to lift at least 25 percent of their allocations using Dangote-owned trucks and pay commercial rates based on distance—an arrangement they say increases operational costs.
While acknowledging Dangote as an important contributor to Nigeria’s fuel supply chain, DAPPMAN stressed that it is not the sole driver of the downstream sector’s performance. The association urged stakeholders to avoid monopolising credit or shifting blame, warning that such narratives could discourage investment and erode public confidence.
It called for greater competition, transparency, and collaboration among all players—including refiners, depot owners, marketers, transporters, and regulators—to safeguard stability in the petroleum supply chain.
With the refinery meeting only a fraction of demand and importers still bearing the larger burden, industry observers fear that prolonged disputes between Dangote and NUPENG could trigger fuel supply disruptions and worsen price volatility for consumers.