Dangote Petroleum Refinery has dared the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to take it to court following recent public statements regarding petroleum product smuggling, which were published on September 15.
In a statement released on Wednesday night, Dangote Petroleum stressed that “any party aggrieved by the content of the publication is free to seek redress through appropriate legal channels.” The refinery added that it would not be intimidated by the seven-day ultimatum issued by DAPPMAN and is fully prepared to defend its position “through all legitimate means.”
DAPPMAN had responded to Dangote with several allegations, including claims that petroleum products were being diverted to neighbouring countries. The Association argued that Dangote’s statements implicitly accused the Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA), Customs, and border agencies of regulatory failure.
“This not only undermines public confidence in these institutions but poses a subtle threat to President Bola Ahmed Tinubu’s reform agenda. The administration has supported deregulation and competition. DAPPMAN supports these reforms fully. The refinery’s actions suggest a preference for protectionism and dominance,” the Association said.
DAPPMAN gave the refinery a seven-day ultimatum to either retract the allegation or provide documented proof. “We challenge Dangote Refinery to present verifiable evidence that DAPPMAN members are diverting products to neighbouring countries. Smuggling is a national security matter. If any member is complicit, let the relevant agencies act,” the statement added.
In a stern response, Dangote alleged that DAPPMAN demanded an annual subsidy of ₦1.505 trillion to enable its members to match the refinery’s gantry prices at their depots. The refinery explained that although it offered petroleum products at its gantry price, DAPPMAN insisted on using coastal logistics, an option that would add ₦75 per litre in extra costs.
“Based on daily consumption volumes of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), this amounts to an additional annual cost of N1.505 trillion, which the Association effectively asked us to absorb or pass on to Nigerians,” Dangote stated.
The refinery further detailed, “Specifically, the marketers are demanding that we discount N70/litre in coastal freight, NIMASA, NPA, and other associated costs, as well as N5/litre for the cost of pumping into vessels to enable them to transport products from our refinery to their depots in Apapa and sell at the same price as our gantry. We wish to make it clear that we have no intention of increasing our gantry price to accommodate such demands, nor are we willing to pay a subsidy of over N1.5 trillion, a practice that historically defrauded the Federal Government for many years. DAPPMAN and other marketers are welcome to lift products directly from our gantry and benefit from our logistics-free initiative.”
Dangote reiterated that its refusal to comply with DAPPMAN’s subsidy request is the reason behind recent criticisms. The refinery also highlighted that it maintains sufficient capacity to meet domestic demand and support exports, consistently keeping a closing stock of 500 million litres of refined products each month.
“Between June and September, the refinery exported a combined total of 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes over the same period. This action amounts to dumping, which is detrimental to the Nigerian economy and the well-being of its citizens,” the statement concluded.
