Smuggling Allegations :Depot Owners Threaten To Sue Dangote Refinery

September 17, 2025
September 17, 2025
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Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has threatened to sue the Dangote Refinery for accusing its members of diverting petroleum products to neighbouring countries.

The group said it will seek legal redress if the company refuses to retract or proof the allegation with verifiable evidence in one week.

“We challenge Dangote Refinery to present verifiable evidence that DAPPMAN members are diverting products to neighbouring countries.

“Smuggling is a national security matter. If any member is complicit, let the relevant agencies act.

“We issue a 7-day ultimatum to the refinery to either retract this allegation or provide documented proof. If neither occurs, we reserve the right to seek legal redress”, the group said in a statement on Wednesday.

The group seeks a petroleum market where all players follow the same rules,consumers benefit from efficiency and choice and supply is diversified, safe, and competitive

The group also punctured some of the claims made by the Dangote Refinery in its recent public notice with a view to correcting the narratives.

It said:”As an association representing legitimate depot owners and marketers in Nigeria’s deregulated downstream sector, we are compelled to correct the record and address claims that threaten the integrity of our industry, mislead the public, and undermine regulatory confidence.

“We categorically state that our members, including Matrix, AA Rano, AYM Shafa, and NIPCO are fully tax compliant as we are not aware of any pending cases or disputes against them for default in their tax obligations.”

The statement said the refinery’s claim that DAPPMAN sponsored NUPENG suggests a fundamental lack of understanding of how Nigeria’s downstream ecosystem works. 

It explained that stakeholders such as NUPENG, NARTO, PETROAN, MEMAN, IPMAN, and DAPPMAN are independent entities, each with distinct roles and interests. 

It added:”DAPPMAN does not control labour unions or other industry associations and has no business interfering in their decisions.

“DAPPMAN did not sponsor or support NUPENG’s proposed industrial action. Our role has been one of de-escalation, focused on averting disruption to fuel supply and national mobility.”

It posited that market pricing was not  a Dangote-driven outcome

The recent reductions in pump prices,it said, are primarily the result of stronger naira supported by the fiscal and monetary reforms of President Bola Ahmed Tinubu’s administration and the Central Bank of Nigeria (CBN)

It also attributed the price reductions to declining international crude prices,

market deregulation and improved foreign liquidity under the current administration

The statement said the Dangote Refinery has, in recent times, successfully exported refined petroleum products to the United States and other countries with well-established refining capacity and competitive supply chains. 

According to the group, these markets, despite having robust domestic production, remain open to external suppliers in the interest of supply diversity and market efficiency. 

It added:”If such countries had adopted restrictive trade practices, these export opportunities would not have existed. This underscores the global value of open, competitive supply chains, a principle Nigeria must uphold, not abandon.”

The depot owners said allegations that Nigerian marketers import Dangote-refined products from Togo are both misleading and ironic. 

It added:”Pricing “Offshore Lome” reflects international market transactions and is not the same as retail pricing within Lome, Togo.

“It is, in fact, the Dangote Refinery that offers discounts of over $40/MT to foreign traders while denying Nigerian marketers access to coastal vessel loading and restricting them to gantry-only lifting. This restrictive access and pricing structure create the very arbitrage opportunity the refinery now criticizes.”

The statement said Dangote’s claims that DAPPMAN members import fuels with sulphur levels above 50ppm contradict its own operational record. 

It disclosed that the refinery  applied for waivers from NMDPRA to distribute high-sulphur products, in direct contravention of PIA Section 317(11).

The group challenged the Dangote Refinery to open its production and dispatch records to independent audit in order authenticate its actual volume claims.

The refinery , DAPPMAN maintains, currently supplies no more than 35% of national consumption.

Speaking on the Compressed Natural Gas , the group said the Dangote Group has a history of fatal road crashes linked to poorly trained or unsupervised drivers. 

It also said adding 4,000 new trucks to Nigeria’s already strained road network without mandatory training, retraining, and safety audits only heightens the risk of further tragedies.

The depot owners implored the Federal Road Safety Commission, insurance industry, and relevant regulators to conduct a comprehensive audit of Dangote’s transport operations and road safety record. 

Residents along major corridors, such as the Lekki-Epe Expressway, are already experiencing worsening congestion and road wear due to increased truck traffic. Without immediate intervention, the risks to lives, property, and public infrastructure will escalate.

It also faulted Dangote’s statements which accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Customs, and border agencies of regulatory failure.

It added:This not only undermines public confidence in these institutions but poses a subtle threat to the President Bola Ahmed Tinubu administration’s reform agenda. 

“The administration has supported deregulation and competition. DAPPMAN supports these reforms fully. The refinery’s actions suggest a preference for protectionism and dominance.”

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