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From Adanna Nnamani, Abuja
Dangote Petroleum Refinery has rejected a demand by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) for a subsidy worth over N1.5 trillion, describing it as unjustifiable and detrimental to Nigeria’s economy.
In a statement on Wednesday, September 17, 2025, the company said DAPPMAN’s sustained attacks on the refinery were linked to its insistence that Dangote should absorb an annual cost of about N1.505 trillion to enable marketers to sell fuel at the same price as its gantry.
The refinery explained that while its products are offered to marketers at gantry prices, DAPPMAN was pushing for coastal logistics supply, which would add N75 per litre in costs. With daily consumption projected at 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), the additional cost would amount to over N1.5 trillion annually.
Specifically, the marketers were said to be demanding a discount of N70 per litre covering coastal freight, Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Ports Authority (NPA) and other charges, as well as N5 per litre for pumping into vessels to transport products to their depots in Apapa.
The refinery insisted it would neither raise gantry prices nor bear subsidy costs, warning that such practices had previously defrauded the Federal Government. It noted that marketers were free to lift products directly from its facility under its logistics-free model.
On capacity, Dangote stated that it maintains a closing stock of 500 million litres of refined products monthly, with exports of 3.2 million metric tonnes of PMS, AGO and aviation fuel between June and September. Within the same period, it said marketers imported 3.68 million metric tonnes, which it described as dumping and harmful to the economy.
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“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.
The Dangote Petroleum Refinery has sufficient capacity to meet domestic demand and support export. We consistently maintain a closing stock of 500 million litres of refined products in our tanks 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, an action that amounts to dumping which is detrimental to the Nigerian economy and the wellbeing of its citizens,” the statement read in parts.
The company reaffirmed its commitment to supporting President Bola Tinubu’s reform agenda, stabilising the naira, cushioning the impact of fuel subsidy removal, positioning Nigeria as a refining hub, and creating jobs.
Dangote added that it maintains strong ties with government agencies and will continue to support their work while holding institutions accountable where necessary.
