A dispute has emerged between Dangote Refinery and the Petroleum Products Marketers of Nigeria, also known as DAPPMAN, regarding fuel subsidy claims worth N1.5 trillion. The $20 billion Dangote Refinery, with a capacity of 650,000 barrels per day, has accused DAPPMAN of requesting subsidies to align with the refinery’s gantry price of N820 per liter.
Dangote Refinery stated that it has no intention of increasing its gantry price to accommodate such demands, nor is it willing to pay a subsidy of over N1.5 trillion, citing that this practice has historically defrauded the Federal Government. The refinery invited DAPPMAN and other marketers to lift products directly from its gantry, benefiting from its logistics-free initiative.
Furthermore, Dangote Refinery alleged that DAPPMAN was involved in smuggling and diverting petroleum products to neighboring countries. The refinery reported that between June and September 2025, it exported 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes during the same period.
In response, DAPPMAN denied all allegations made by Dangote Refinery and threatened to sue the oil firm. DAPPMAN gave Dangote Refinery a seven-day ultimatum to retract its allegations and challenged the refinery to provide evidence for its claims. The marketers’ association accused Dangote Refinery of offering a $40/MT discount to foreign traders while denying Nigerian marketers access to coastal vessel loading and restricting them to gantry-only lifting.
DAPPMAN challenged Dangote Refinery to present verifiable evidence that its members are diverting products to neighboring countries, emphasizing that smuggling is a national security matter. The association stated that if any member is complicit, the relevant agencies should act, and they reserved the right to seek legal redress if the allegations are not retracted or proven.
In a related development, a court barred the Nigeria Union of Petroleum and Natural Gas Workers from striking against Dangote Refinery over anti-labour practices. This dispute between Dangote Refinery and DAPPMAN is not the first, as the refinery had previously sued DAPPMAN and the Nigerian Petroleum Company Limited over importation before discontinuing the lawsuit in July 2025. The current feud highlights ongoing tensions within Nigeria’s petroleum industry and has significant implications for the country’s fuel subsidy regime and the operations of major industry players.
