Mkpoikana Udoma
Port Harcourt — The Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, has raised alarm over what it describes as “a creeping monopoly by the Dangote Refinery,” warning that the company’s forward integration strategy poses a major threat to competition, employment, and market stability in the downstream oil sector.
This is as Dangote Petroleum Refinery had announced that it will begin direct distribution of Premium Motor Spirit, PMS, and diesel nationwide.
Dangote said effective from 15th of August 2025, it will begin the distribution of the products to marketers, petrol dealers, manufacturers, telecoms firms, aviation, and other large users across the country, with free logistics to boost distribution network.
But in a strongly worded statement issued by the association’s National Public Relations Officer, Dr. Joseph Obele, PETROAN accused Dangote of attempting to dominate the petroleum retail market under the guise of vertical integration, controlling both refining and distribution, thereby edging out thousands of smaller players and creating an uneven playing field.
The statement said, “With a production capacity of 650,000 barrels per day, Dangote Refinery should be competing globally with international refineries, not acting as a distributor in Nigeria’s downstream sector. This level of vertical control is a monopoly in disguise, and it threatens the survival of modular refineries, truck owners, filling station operators, and suppliers across the country.”
PETROAN’s National President, Dr. Billy Gillis-Harry, in the statement warned that if not checked, Dangote could deploy a price penetration strategy,undercutting market prices in the short term to eliminate competition, only to raise prices later when competitors have exited the market.
“Thousands of filling stations could shut down, truck drivers will lose jobs, and local suppliers will be out of business. This is not the industrial growth Nigerians were promised. We are watching a sector being quietly handed over to one operator.”
A major concern raised by PETROAN is the introduction of 4,000 new Compressed Natural Gas, CNG-powered tankers by Dangote Refinery, which the association says will not only reduce transportation costs for the company but also displace thousands of independent petroleum transporters and drivers who rely on traditional diesel-powered trucks.
“Dangote’s CNG fleet is a strategic move to eliminate competition. But what becomes of the thousands of Nigerians who own or operate diesel tankers? What happens to those whose livelihoods depend on the supply chain Dangote is now taking over from end to end?”
The association listed several vulnerable stakeholders likely to be affected if the current trajectory continues. These include modular refinery operators, truck owners, filling station operators, petroleum product suppliers, and even diesel suppliers servicing telecom infrastructure.
PETROAN called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, and the Minister of State for Petroleum Resources to urgently step in with appropriate regulatory oversight to prevent Dangote from monopolising the market.
“PETROAN is not against Dangote’s investment, but the downstream sector must remain competitive. We urge the regulators to implement price control mechanisms, enforce anti-monopoly regulations, and ensure access to crude for local refineries.”
The association’s key recommendations include promoting market competition, strengthening regulatory oversight, supporting local refining operations with crude supply, and developing a national framework to mitigate potential job losses stemming from Dangote’s growing market power.
“This is not just an industry issue. It is an economic survival issue for millions of Nigerians whose jobs are now at risk. The government must act urgently,” PETROAN said.
