The Dangote Group has dismissed allegations of attempting to monopolise Nigeria’s downstream petroleum sector, stating that vested interests threatened by the country’s move toward self-sufficiency are behind the recent pushback against its 650,000 barrels-per-day refinery.
The company’s position follows remarks from the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Olufemi Adewole, who accused Dangote Refinery of engaging in price cuts and attempting to dominate the market at the expense of independent depot operators and importers.
Adewole, speaking on behalf of DAPPMAN, argued that the refinery has not demonstrated the capacity to meet current domestic fuel consumption needs.
He claimed that private depot owners continue to shoulder the responsibility of bridging the supply gap across the country, despite Dangote’s massive refining capacity.
Responding to these claims, a senior official at Dangote Refinery stated that the allegations were unfounded and driven by market players who had benefited from years of fuel importation and subsidy arbitrage.
The official, who spoke on condition of anonymity, said the refinery produces more than enough fuel to satisfy local demand and export surplus to neighbouring markets.
“We produce more than the local market requires and continue to export daily,” the Dangote source said. “The pushback we are seeing is from people who profited immensely during the subsidy regime through round-tripping and inflated consumption figures.”
According to refinery data, the facility currently produces 57 million litres of petrol, 20 million litres of jet fuel, and 37 million litres of diesel daily.
This output exceeds Nigeria’s average daily consumption of approximately 50 million litres of PMS, as reported by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The Dangote Group further explained that Nigeria’s consumption figures have historically been exaggerated to justify large import volumes under the fuel subsidy regime, a system the company claims the refinery’s operations are now exposing.
“The maximum local consumption is around 40 percent of our total refining capacity. The rest is exported. Nigeria does not consume up to 50 percent of what we produce,” said Aliko Dangote during a recent facility tour.
The Group added that its pricing model is designed to reflect local production economics and global market trends, rejecting accusations of predatory pricing aimed at driving competitors out of business.
Critics within the downstream industry had also questioned the refinery’s inventory levels and suggested it lacked the capacity to store sufficient volumes for national supply.
Dangote officials responded by citing internal data showing 177 tanks with a combined storage capacity of 4.742 billion litres, including 600 million litres for petrol, 408 million litres for aviation fuel, and 340 million litres for diesel.
Industry observers say the friction between the refinery and fuel importers reflects a broader struggle within the downstream sector, as local refining threatens the long-standing dominance of fuel importation businesses.
In line with President Bola Tinubu’s “Nigeria First” policy, Dangote executives argue that prioritising local refining is critical for building economic resilience and achieving energy security.
“The President’s decision to ban imports of goods we can produce locally is the only way to grow the economy,” said a Dangote official. “Those fighting it are doing so to protect personal interests, not national progress.”
The refinery reiterated its commitment to transparent operations and called on stakeholders to focus on building a sustainable and competitive domestic energy market rather than resisting reforms that serve the country’s long-term interest.
