Nigeria Oil Marketers Warn Dangote Refinery Plans Threaten Nationwide Monopoly

Dangote Refinery's plan to commence nationwide distribution of petroleum products using 4,000 Compressed Natural Gas-powered trucks has raised significant concerns among Nigerian gasoline retailers and marketers. The Petroleum Products Retail Outlets Association of Nigeria (PETROAN) and other industry stakeholders warn that this move could create a monopoly by allowing Dangote to control refining, supply, distribution, and retail simultaneously, posing risks of job losses and business shutdowns across the petroleum value chain. Independent marketers fear the bypassing of traditional middlemen will threaten thousands of jobs and destabilize existing logistics and financing networks crucial to fuel distribution. PETROAN has called on the Nigerian government and regulatory authorities to intervene with safeguards, including enforcing anti-monopoly laws, supporting fair pricing, ensuring open access to depots and terminals, and preventing market dominance. While some experts commend the plan for improving fuel access, particularly in underserved regions, the prevailing concern is that Dangote's market power could lead to price fixing and exploitation of consumers, ultimately undermining competition and industry sustainability. The associations emphasize the need for an inclusive downstream sector that protects smaller operators and maintains a competitive market landscape.