The rift between the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Dangote Group has intensified, with DAPPMAN threatening Dangote with lawsuit if the refinery giant does not retract its smuggling allegations.
This escalation comes at a critical moment when Nigeria’s downstream petroleum sector is already grappling with issues of pricing, competition, and supply stability.
The clash began when Dangote Petroleum Refinery accused some marketers of diverting products purchased at discounted rates under the guise of domestic supply to neighbouring countries where prices are almost double.
Dangote argued that such practices had long drained Nigeria’s economy and vowed not to be complicit.
In its statement, the company suggested that entrenched cartels had exploited loopholes in the subsidy regime and import framework for years.
It challenged industry stakeholders to support a forensic audit of import records, subsidy claims, and daily consumption figures.
This bold accusation has now led to DAPPMAN threatening Dangote with lawsuit, as the marketers insist that the claims are false and damaging to their reputation.
In a strongly worded response, DAPPMAN rejected Dangote’s claims, demanding verifiable evidence of smuggling.
The association gave Dangote seven days to either provide proof or withdraw the allegations. Failure to do so, it warned, would result in legal action.
“We challenge Dangote Refinery to present verifiable evidence that DAPPMAN members are involved in diversion.
Smuggling is a national security matter, and if any member is guilty, the authorities must act. Otherwise, this allegation must be retracted, or we will proceed to court,” the association declared.
This ultimatum highlights the seriousness of the conflict, with DAPPMAN threatening Dangote with lawsuit becoming a headline development in Nigeria’s oil industry.
The fallout comes just days after Dangote slashed petrol prices, fuelling a price war in the market.
DAPPMAN countered, however, that the decline in pump prices was not due to Dangote’s refinery output but rather broader market forces.
According to the marketers, the stronger naira and falling global crude oil prices were the real drivers.
They noted that the naira has been trading between N1,500 and N1,550 per dollar in recent months, while Brent crude has dropped from $92 to $76 per barrel.
By dismissing Dangote’s claim of market dominance, the association doubled down on its narrative, further justifying why DAPPMAN threatens Dangote with lawsuit over allegations it says are misleading.
DAPPMAN also accused the Dangote refinery of seeking to monopolise Nigeria’s downstream sector.
The association pointed out that while local marketers face restrictions, Dangote has been exporting refined products to markets in the United States and Europe.
It claimed the refinery offered discounts of over $40 per metric tonne to foreign traders while allegedly denying Nigerian operators coastal vessel loading rights.
This, DAPPMAN said, forced local marketers to rely on offshore hubs like Lomé, which increases their operational costs.
Such claims reinforce why DAPPMAN threatens Dangote with lawsuit, as the marketers argue that the refinery’s business model undermines competition and the survival of independent operators who manage hundreds of depots and thousands of retail outlets nationwide.
Beyond pricing and smuggling claims, the association raised additional concerns about Dangote’s plan to deploy 4,000 compressed natural gas (CNG) trucks.
DAPPMAN warned of potential road safety risks and accused the refinery of undermining regulators, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority and Customs.
By portraying Dangote’s position as an attack on institutions, DAPPMAN hopes to build public sympathy as it pushes back against the allegations.
This strategy underscores the seriousness of DAPPMAN threatening Dangote with lawsuit as a way of protecting both its members and the credibility of regulators.
In response, Dangote Petroleum Refinery maintained its stance, insisting that it would not withdraw its claims.
The company said it has sufficient evidence and is prepared to defend itself in court.
Dangote also accused DAPPMAN of demanding indirect subsidies worth over N1.5 trillion annually through coastal logistics costs—an expense it refused to pass on to Nigerians.
The company reaffirmed its commitment to supporting government reforms, stabilising the naira, and boosting Nigeria’s refining capacity.
This firm rebuttal suggests that the conflict may only deepen, making the possibility of court proceedings more likely now that DAPPMAN threatens Dangote with lawsuit officially.
Meanwhile, in a related development, the National Industrial Court in Abuja issued an interim injunction restraining unions like NUPENG from strikes or blockades that could disrupt operations at the Dangote refinery.
This legal intervention signals how high tensions are across Nigeria’s downstream sector, with multiple disputes converging at once.
The standoff between Dangote and DAPPMAN highlights deepening divisions in Nigeria’s oil industry.
While Dangote’s 650,000 barrels-per-day refinery promises to reduce dependence on imports, its dominance risks destabilising existing players.
For now, the seven-day deadline looms, and with DAPPMAN threatening Dangote with lawsuit, all eyes are on whether both sides will seek compromise or test their claims in court.
Either way, the outcome will shape the future of Nigeria’s downstream petroleum market, influencing competition, transparency, and consumer prices for years to come.
