A fresh round of competition has intensified in Nigeria’s downstream petroleum sector as independent marketers reportedly imported petrol worth over N2.4 trillion in just 70 days, even as the Dangote Refinery increases its domestic supply capacity.
According to an exclusive analysis of midstream and downstream import records obtained by ireport247news.com, petroleum marketers imported 2.57 billion litres of Premium Motor Spirit (PMS) between March 1 and May 9, 2025. This importation, which came at an average retail price of N948 per litre, amounts to a staggering N2.42tn in value. This figure is separate from the N4.51tn reportedly spent between October 2024 and February 2025 on fuel imports.
Industry stakeholders say the massive import bill highlights a clear resistance to patronizing the $20 billion Dangote Refinery, which now produces a significant portion of Nigeria’s domestic fuel needs.
Speaking recently at a business forum, Aliko Dangote, President of the Dangote Group, alleged that entrenched interests and oil sector cabals were working against the success of his refinery. “The fight is not yet finished,” he said. “But I have been fighting all my life, and I am 100 per cent sure I will win.”
The Dangote Refinery, located in Lekki, Lagos, has a refining capacity of 650,000 barrels per day, positioning it as one of the largest single-train refineries in the world. Despite this, Dangote says major marketers continue to resist buying from the plant in bulk, forcing him to pursue legal action against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for allegedly issuing import licences to marketers who bring in substandard fuel.
Latest data shows that daily fuel import volumes have reduced from 44.6 million litres in August 2024 to just 14.7 million litres by April 2025, indicating growing reliance on local refining. However, the trend of mass importation by select marketers shows that foreign-sourced fuel remains a major player in Nigeria’s downstream mix.
Industry observers suggest that the standoff between marketers and the refinery is rooted in pricing, profit margins, and market control.
According to Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), the competition is natural. “This is business. If a product is cheaper and doing better in the market, others will fight back. But we support Dangote’s efforts to ensure Nigerians get affordable fuel,” he said.
But others have raised concerns over potential monopoly. Olufemi Adewole, Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), warned that Dangote’s scale could distort market dynamics if not carefully regulated.
“There is a clear and present danger of monopoly,” Adewole said. “Dangote controls pricing and prefers selective sales methods, restricting vessel access to private depot owners. Our members in Calabar and Port Harcourt cannot lift in bulk, despite having the infrastructure.”
He added that ongoing price slashes from the refinery—sometimes issued after cargo has left the gantry—leave marketers absorbing significant financial losses.
While Dangote alleges that international oil companies and some domestic marketers are sabotaging his operations by denying crude supply and refusing to purchase his products, DAPPMAN maintains that multiple players must be allowed to operate to ensure market balance.
“The issue is not sabotage. There are vested interests from those who have invested billions in keeping Nigeria’s fuel supply chain active,” Adewole added.
Meanwhile, Billy Gillis-Harry, President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), appealed for a level playing field, urging regulators to ensure fair competition.
“There is space for everyone in this market. Let Dangote refine and sell, and let others import if they must. The focus should be on quality and affordability for Nigerians,” he said.
As the refinery continues its ramp-up, stakeholders agree that the government must ensure a competitive and transparent regulatory environment—one that supports both legacy marketers and new entrants like the Dangote Group.