Dangote Refinery Rejects ₦1.5trn Subsidy Demand, Reaffirms Support for Tinubu’s Economic Reforms
The Dangote Petroleum Refinery has firmly rejected a demand from the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) for what it described as an unjustifiable annual subsidy exceeding ₦1.5 trillion.
In a statement released on Thursday, the refinery reaffirmed its earlier position published in several national dailies on September 15, insisting it would not bow to calls for a coastal freight subsidy to cover distribution costs. It said the marketers’ request amounted to reviving a “historically fraudulent” subsidy regime.
At the centre of the standoff is DAPPMAN’s reported insistence that Dangote subsidize an additional ₦75 per litre on petroleum products transported by coastal vessels from the refinery to depots, mostly in Apapa, Lagos.
With Nigeria’s daily consumption estimated at 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), Dangote warned that such a demand would translate into an unsustainable ₦1.505 trillion yearly cost.
“We have no intention of increasing our gantry price to accommodate such demands, nor are we willing to pay a subsidy of over ₦1.5 trillion—a practice that historically defrauded the Federal Government for years. DAPPMAN and other marketers are welcome to lift products directly from our gantry and benefit from our logistics-free initiative,” the statement read.
The refinery maintained that its pricing model—offering products at the gantry without logistics surcharges—was fair and transparent. It also accused marketers of undermining local refining efforts through heavy fuel imports, which it described as economic dumping.
Between June and September alone, Dangote Refinery exported over 3.2 million metric tonnes of PMS, AGO, and aviation fuel, while marketers imported more than 3.6 million metric tonnes within the same period.
Reiterating its support for President Bola Ahmed Tinubu’s reform agenda, the refinery said it would continue to back efforts aimed at stabilizing the naira, eliminating subsidies, and transforming Nigeria into a regional refining hub.
While noting that it welcomes aggrieved stakeholders to seek legal redress, Dangote insisted it would not yield to threats.
“We enjoy strong working relationships with government agencies and remain committed to supporting their efforts, while holding institutions accountable where necessary. Dangote Petroleum Refinery remains dedicated to Nigeria’s progress and stands ready to partner with patriotic stakeholders in pursuit of national development,” the company stated.
