DAPPMAN counters Dangote’s allegation amid monopoly concerns

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has firmly rejected claims of a cabal operating within the country’s midstream and downstream petroleum sectors, saying the narrative is misleading and undermines legitimate investments by marketers.

Speaking during a televised interview with TVC, Olufemi Adewole, Executive Secretary of DAPPMAN, addressed recent comments made by Aliko Dangote, President of Dangote Group, who claimed on May 1 that he was still battling entrenched interests, or “cabals,” seeking to frustrate the operations of his $20 billion refinery.

Dangote had described these so-called cabals as major oil marketers and traders, asserting that they posed a threat to the survival of his refinery.

Reacting to the claim, Adewole said the use of the term “cabal” is not only inappropriate but also subversive, painting an unfair picture of industry players who have sustained Nigeria’s petroleum supply chain for decades.

“There is no cabal in the midstream and downstream operations as far as I am concerned,” Adewole said. “Going by the English definition of the word cabal, it’s a negative, subversive thing. There is no cabal. But I can tell you that we have vested interests.”

He emphasized that members of DAPPMAN have heavily invested in the petroleum sector, often stepping in to bridge supply gaps long before the Dangote Refinery came on stream.

“If they have invested billions of naira over the years to ensure Nigerians have fuel, they deserve commensurate returns on their investments,” he stated.

While acknowledging the potential of the Dangote Petroleum Refinery to positively impact Nigeria’s fuel supply chain, Adewole warned against the risk of monopolistic dominance, given the refinery’s 650,000 barrels per day production capacity.

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“This capacity alone gives Dangote Refinery the power to influence or even dictate pricing. That’s a clear and present danger for us,” Adewole cautioned. “We would rather see a competitive, balanced market.”

He reassured that regulators are actively working to maintain balance in the sector and to uphold the tenets of the Petroleum Industry Act (PIA), which is designed to foster fair competition and prevent market manipulation.

Highlighting recent legal actions by the Dangote Refinery against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and some marketers, Adewole said the lawsuit raised concerns about Dangote’s intentions.

“What they were challenging was the authority of the regulator to issue import licenses to other marketers. That gives you a glimpse into their mindset,” he said.

Adewole further disclosed that according to NMDPRA CEO Farouk Ahmed, the Dangote refinery is not yet capable of meeting even the country’s reduced fuel consumption needs. As such, private depot owners continue to play a vital role in bridging the supply gap.

“The fear of monopoly is real,” Adewole stressed. “We’re working closely with regulators and other stakeholders to ensure no single entity dominates the sector.”

He added that calls to halt fuel importation at this stage would be premature and dangerous, advocating instead for a phased transition once multiple domestic refineries are operational.