Dangote Petroleum Refinery has rejected calls by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) for a subsidy estimated at ₦1.505 trillion. The company insisted that it will neither adjust its gantry prices nor absorb extra costs associated with the coastal delivery of fuel products.
The refinery issued a statement earlier this week, which was published across several national newspapers and online platforms. It reaffirmed its position despite DAPPMAN’s seven-day ultimatum, stressing that any aggrieved party could seek redress in court.
Dispute Over Coastal Delivery Costs
Dangote explained that the core of the dispute lies in DAPPMAN’s insistence on receiving products via coastal logistics rather than lifting directly from its gantry. According to the refinery, this method would add ₦75 per litre. The breakdown includes ₦70 for coastal freight, NIMASA, NPA, and other charges, plus ₦5 for vessel pumping.
Using daily consumption projections of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), Dangote calculated the annual cost at ₦1.505 trillion (₦1,505,625,000,000). It argued that the demand effectively amounts to reinstating fuel subsidy, a burden Nigeria has long struggled to eliminate.
The company maintained that marketers are free to load products directly from its gantry at refinery prices. However, it ruled out increasing gantry prices or covering the ₦1.5 trillion in requested costs.
Refinery Output and Market Impact
On supply, Dangote said it consistently maintains a closing stock of 500 million litres of refined products each month. Between June and September 2025, it exported 3,229,881 metric tonnes of petrol, diesel, and aviation fuel. In contrast, marketers imported 3,687,828 metric tonnes of refined products in the same period. The refinery described these imports as dumping that undermines the local economy.
Dangote also reaffirmed support for President Bola Tinubu’s reform agenda. It highlighted its contribution to stabilising the naira, cushioning the impact of subsidy removal, boosting foreign exchange inflows, and creating jobs.
The refinery added that it continues to work with government agencies but will not hesitate to hold institutions accountable when necessary. It stressed its long-term commitment to Nigeria’s development and welcomed partnerships with responsible stakeholders.
Breakdown of Marketers’ Subsidy Request
- Daily PMS volume: 40 million litres
- Daily AGO volume: 15 million litres
- Coastal freight & ops cost (₦/litre): ₦70
- Pumping into vessel (₦/litre): ₦5
- Total daily cost: ₦3bn (PMS), ₦1.125bn (AGO)
- Total yearly cost: ₦1.095trn (PMS), ₦410.6bn (AGO)
- Overall annual subsidy requested: ₦1.505 trillion