The association of Depot owners has issued a strongly worded statement clarifying its role in the downstream petroleum sector, cautions against narratives that project the Dangote Refinery as the sole drive of Nigeria’s fuel stability.
Depot Owners Raises Concerns Over Market Narratives
In a press release signed by its Executive Secretary, Olufemi A. Adewole, on 13 September 2025, Depot owners expressed alarm over the escalating tensions between the Dangote Refinery and the National Union of Petroleum and Natural Gas Workers (NUPENG). The association warned that such disputes risk reputational damage and could undermine confidence in the broader downstream ecosystem.
According to the association, claims suggesting that Nigeria’s downstream stability depends solely on the Dangote Refinery are misleading. While acknowledging the refinery as a “valuable contributor,” Depot owners noted that it currently supplies only 30 to 35 percent of national demand, with the balance provided by long-standing marketers under the oversight of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Market Dynamics and Price Tensions
The association of Depot owners criticised the refinery’s pricing strategy, noting that its periodic pump price reductions framed as patriotic gestures were often timed to disrupt competition. These price cuts, it argued, triggered supply shocks, imposed financial strain on other operators, and at times conflicted with the refinery’s own higher quotes to local buyers.
The group also rejected suggestions that its members import substandard fuel, stressing that all imports comply with NMDPRA protocols and global quality standards. Instead, it accused the refinery of distributing products with sulphur levels above approved thresholds, raising questions about quality assurance and credibility.
Misconceptions About “Free Delivery”
Addressing Dangote’s publicised claim of “free delivery,” Depot owners described it as misleading. It explained that marketers are compelled to lift at least 25 percent of allocations directly from the refinery gantry using Dangote-owned trucks. This, it said, adds logistical and financial burdens on independent marketers, reducing operational flexibility and undermining cost-relief narratives.
Call for Cooperation and Mutual Respect
The association of Depot owners emphasised that Nigeria’s downstream sector is an interconnected ecosystem of refiners, depots, transporters, marketers, and regulators not a one-player market. It urged all stakeholders, including Dangote, to avoid divisive rhetoric and instead embrace collaboration, transparency, and regulatory compliance to safeguard market confidence.
“The Dangote Refinery is a valuable contributor, but it is not a messiah,” Adewole stated, adding that the future of Nigeria’s energy sector lies in “cooperation, regulatory compliance, and mutual respect.”