In a development that underscores ongoing concerns about Nigeria’s downstream oil sector, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has revealed that members can no longer rely on Nigerian National Petroleum Company Limited (NNPCL)-owned refineries for Premium Motor Spirit (PMS), also known as petrol, due to low output levels.
In an exclusive interview with our correspondent on Sunday, DAPPMAN Executive Secretary, Olufemi Adewole, stated that the country’s major marketers now depend almost solely on the Dangote Petroleum Refinery to meet petrol demands, as the Warri and Port Harcourt refineries are only producing naphtha and not enough PMS.
Despite recent revamp efforts and promises of renewed production, NNPCL’s facilities are still far from achieving optimal performance. Adewole explained, “The NNPC refineries, both the revamped Port Harcourt and Warri, are not yet optimally producing PMS; they are producing naphtha. Our members will not go to them for now.”
Although NNPC previously announced in November 2024 that the Port Harcourt refinery had resumed operations at 70% capacity—delivering 1.4 million litres of PMS daily through blending with naphtha—industry insiders now report much lower figures. A recent report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority confirmed that the refinery has been operating below 40% capacity, while Warri Refinery has remained completely shut since January 2025 due to critical technical issues.
In a management shake-up, the three managing directors overseeing the Port Harcourt, Warri, and Kaduna refineries were relieved of their duties earlier this year, fueling speculation that NNPC’s multi-billion-dollar refinery overhaul is falling short of expectations.
Amid NNPC’s challenges, marketers have turned to the Dangote Petroleum Refinery. However, the facility’s supply chain policies have sparked tension among depot owners. According to Adewole, while DAPPMAN members are eager to lift products from the refinery, access remains restricted.
“Dangote refinery prefers a selective approach that chooses a few marketers and deals through them, and it prefers the gantry supply. But we are depot owners. We pick in bulk—15 to 25 metric tonnes. So, if the portal is open and we are allowed to load our vessels, then it’s a lot easier for us,” he said.
Adewole added that depot owners would prefer to buy locally but may resort to imports if the Dangote refinery remains inaccessible. “It is not the primary will of the depot owners to import; we would rather buy locally and sell to Nigerians, but the opportunities are limited.”
The standoff between marketers and local refineries raises new fears about Nigeria’s petrol supply stability and pricing. Though the Petroleum Industry Act (PIA) allows marketers to import fuel, doing so increases exposure to foreign exchange volatility and may drive up pump prices.
Adewole said DAPPMAN is engaging with Dangote’s top management to secure favorable terms for bulk purchases, emphasizing that the goal is to provide affordable fuel to Nigerians while sustaining business operations. “We’ve had several meetings with Dangote Refinery at the highest level of their management. We’re still talking with them. It’s not yet closed, but we want a situation in which we can pick from the refinery at the best possible price without being shortchanged,” he said.
DAPPMAN has positioned its members to efficiently distribute PMS across the country, provided supply becomes available. “We have depots all over the country, spread all over the coastal areas. All these depots are ready and willing to pick from Dangote. But is Dangote ready and willing?”
Despite expressing pride in the establishment of the Dangote refinery, Adewole stressed that business considerations must prevail. “It’s our pride that the Dangote refinery is up and running. We want to work with Dangote, but we are also not going to keep losing money because the bottom line is that we are in business.”
Last year, NNPC announced that the Port Harcourt refinery would produce substantial volumes of PMS, diesel, kerosene, and low-pour fuel oil. NNPC spokesperson Olufemi Soneye had insisted that the refinery was producing 1.5 million litres of diesel, 900,000 litres of kerosene, and 2.1 million litres of LPFO daily, while blending 1.4 million litres of PMS using straight-run gasoline sourced from Indorama Petrochemicals.
However, industry reports and market reactions indicate otherwise. While blending remains a global practice, experts argue that consistent, large-scale PMS output from local refineries is essential for energy security and price stability in Nigeria.
With the Warri and Port Harcourt refineries underperforming and the Dangote refinery yet to open access to bulk marketers, Nigeria’s PMS supply chain faces growing uncertainty. While DAPPMAN insists that local sourcing remains the top priority, the association may have no choice but to resume importation to ensure fuel availability across the country.
Until NNPCL refineries ramp up full production and Dangote’s distribution strategy becomes more inclusive, Nigerians may continue to feel the pinch at fuel stations—and marketers the pressure to stay afloat.