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‘No Hidden Subsidy’ – Dangote Refinery Tells Marketers To Pay Own Logistics

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The management of Dangote Petroleum Refinery has rejected the claim by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) that it should bear a subsidy cost of more than ₦1.5 trillion.

The company insisted that it would not be compelled to shoulder marketers’ distribution expenses.

In a statement released on Thursday via its official X account, with the headline We Stand By Our Statement on DAPPMAN … Marketers’ ₦1.505trn Subsidy Demand”, the refinery stressed its determination to defend its operations from what it described as misleading narratives.

READ ALSO: Marketers Demand N1.5trn Subsidy to Match Refinery Gantry Price – Dangote

“Dangote Petroleum Refinery stands by its statement on the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), as published on Monday, September 15.

“We wish to emphasise that any party who feels aggrieved with the contents of the publication is free to seek redress in court. We have the right under Nigerian law to defend ourselves against slander, falsehood, and any misleading or concocted story that could damage our reputation,” the company declared.

The dispute centres on DAPPMAN’s argument that moving petroleum products from the Lagos-based refinery to depots nationwide involves huge costs in logistics and coastal shipping.

But Dangote insisted that its responsibility is to sell products from its gantry at production-based prices plus regulated margins, with distribution costs left for marketers to handle.

“Specifically, we note the crux of DAPPMAN’s assertion was that Dangote Petroleum Refinery subsidy on sales of petroleum products (PMS & AGO) to the tune of ₦1.505 trillion (One Trillion, Five Hundred and Five Billion, Six Hundred and Twenty-Five Million Naira), which we are to pay marketers as subsidy.

“We note that petroleum products to marketers are sold at our gantry at prices based on our production costs, plus a regulated margin on products consumed nationwide. DAPPMAN’s claim of subsidy is false and unfounded.

“Our actual logistics cost of distribution is borne by marketers, who bear the cost of transporting products to their depots nationwide.

“We are fully responsible for all supply and consumption volumes of millions of litres of Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), which is an additional investment cost of ₦1,505,625,000,000 only, as they are effectively asking us to absorb on their behalf,” the statement clarified.

According to the company, marketers want the refinery to take on the burden of coastal transportation, in addition to loading at its gantry.

“Specifically, the marketers are demanding that Dangote Petroleum Refinery take on the cost of moving products to their coastal depots nationwide through coastal vessels, in addition to loading at our refinery gantry, which is already at par with NNPC Ltd, International Oil Companies (IOCs), and other international refineries,” the statement read.

Reiterating that the federal government had removed fuel subsidy in May 2023, the refinery stressed that there was no basis for DAPPMAN’s claim.

“We note that in June this year, we made it clear that there is no subsidy in our pricing template, nor have we entered into any agreement with marketers to subsidise petroleum products.

“We reiterate that subsidy on petroleum products was removed by the Federal Government in May 2023, and as such, we cannot be coerced into absorbing the cost of marketers’ distribution,” the company said.

It also pointed to its own logistics investments, noting that over the past three months it had successfully moved millions of litres of petroleum products across the country.

“Dangote Petroleum Refinery has sufficient logistics to distribute fuel nationwide through road and rail infrastructure, which has been tested in the past three months between June and September.

“The refinery completed a combined 3,478,228 tanker movements over the same period, ensuring sustained supply of petroleum products nationwide,” it said.

The company described DAPPMAN’s allegations as “wrong and misleading,” and assured that fuel would continue to be supplied at the same price from its gantry across the country.

“It is therefore wrong and misleading for marketers to suggest otherwise. We assure Nigerians that we will continue to supply products to all parts of the country at the same price from our refinery gantry.

“We remain committed to ensuring energy security in Nigeria, delivering products at affordable prices, and working with all stakeholders in the downstream sector towards achieving lasting stability in the nation’s petroleum industry,” the statement added.

Dangote also published a breakdown of the ₦1.5 trillion figure being demanded, pointing out that it represented what marketers wanted the refinery to pay in order for them to sell products at the same price in their depots.

The standoff between the refinery and petroleum marketers comes on the heels of a strike declared by the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), which disrupted supply and reignited national debates over deregulation and subsidy removal.

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Kason1185
Kason1185
5 months ago
Kirsten1803
Kirsten1803
5 months ago
droversointeru
5 months ago

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NEWS

Global Crisis: Attacks on Schools Skyrocket 166% – UN Sounds Alarm on Children’s Safety

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The United Nations has raised the alarm over a dramatic surge in attacks on schools worldwide, reporting a 166% increase between 2021 and 2024.

The rise highlights the escalating dangers faced by children in conflict zones.

United Nations Deputy High Commissioner for Human Rights, Nada Al-Nashif, revealed the figures during the annual meeting of the UN Human Rights Council on the rights of the child on Monday.

SEE MORE: The African Union and the United Nations sign an Agreement on preventing and responding to sexual violence in Africa

The session, themed “Mainstreaming the Rights of Children in Armed Conflict: Prevention and Protection,” focused on protecting children amid global conflicts.

Al-Nashif noted that the attacks were particularly concentrated in Sudan, Ukraine, the Gaza Strip, Myanmar, and Ethiopia, where children remain among the most vulnerable victims.

“In 2024, armed conflict directly affected nearly one in six children globally—about 470 million children,” she said. “Years of lost education, trauma, and lasting mental scars shape societies for generations. Long after the fighting subsides, children continue to face deadly risks.”

She highlighted Gaza as having the world’s highest number of child amputees per capita, warning that the impact of war goes far beyond immediate violence.

In Lebanon, government figures show that more than 450,000 people were displaced in less than a week, with at least 394 fatalities, including 83 children, during the 2024 conflict with Israel.

Al-Nashif also stressed the disproportionate risks for displaced children, who are more likely to die from disease linked to unsafe water and sanitation than from direct violence.

In the Democratic Republic of Congo, a 2025 cholera outbreak killed 340 children, underscoring the long-term consequences of conflict.

She called on states to uphold their international obligations to protect children, insisting that protecting children is “both a legal obligation and a humanitarian moral imperative.”

Also speaking at the council, Vanessa Frazier, Special Representative of the UN Secretary-General for Children and Armed Conflict, warned that violence against children continued at extreme levels in 2025.

She urged mainstreaming child protection across peace, security, humanitarian, human rights, and development efforts, emphasizing that children should actively participate in shaping policies designed to safeguard them.

Frazier highlighted her office’s global campaign, “Prove It Matters,” aimed at amplifying children’s voices in conflict resolution and peacebuilding.

The UN report underscores the urgent need for coordinated international action to protect children and ensure their safety in conflict zones worldwide.

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International News

After Turbulent Elections, Portugal Swears In Seguro as President

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Portugal officially inaugurated its new president, Antonio Jose Seguro, on Monday, pledging to bring stability to a nation shaken by political uncertainty and natural disasters.

Seguro, the centre-left candidate, won last month’s presidential run-off against far-right rival Andre Ventura, following weeks of catastrophic storms that killed at least seven people and caused approximately €4 billion ($4.6 billion) in damage.

Speaking at his swearing-in ceremony in Lisbon’s parliament, Seguro emphasized cooperation with the minority right-wing government and vowed to end the country’s “electoral frenzy.”

SEE MORE: Spain, Portugal Plunge Into Darkness Amid Widespread Power Outage

“I will do everything I can to put an end to this electoral frenzy,” he said, pointing to the inability of previous governments to complete their terms.

Amid global crises, including conflicts in the Middle East and a more isolationist US approach under President Donald Trump, Seguro stressed the importance of multilateralism.

“The force of law has been replaced by the power of the strongest,” he remarked.

Seguro succeeds Marcelo Rebelo de Sousa, a conservative who leaves office at 77 after serving two five-year terms.

While the Portuguese presidency is largely ceremonial, Seguro’s leadership signals a commitment to political stability and international engagement.

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NEWS

JUST IN: Nigerians Reeling as Dangote Sparks Another Spike in Fuel Prices

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Nigerians are facing yet another economic blow as petrol prices surge again. The Dangote Petroleum Refinery has raised the gantry price of Premium Motor Spirit (PMS) to N1,175 per litre, marking the third increase in just one week.

The latest adjustment, announced to marketers on Monday, follows a temporary suspension of petrol sales at the refinery on Sunday. Diesel, also known as Automotive Gas Oil, has also been revised upwards to N1,620 per litre.

ALSO READ: NNPC, Dangote Team Up to Power Nigeria’s Energy Future

A senior refinery official, speaking on condition of anonymity, confirmed the hike, noting that it reflects “prevailing market fundamentals and the cost environment we are currently operating in.”

Industry checks show that depot pricing systems have already updated the new rates, signaling an inevitable rise at retail stations.

In some cities, petrol is now being sold at over N1,200 per litre, adding pressure on Nigerian motorists and businesses alike.

This repeated surge comes after earlier increases that pushed gantry prices from N774 to N995 per litre earlier this week.

Experts warn that the hikes are likely to drive up transportation, logistics, and production costs, potentially impacting the prices of goods and services nationwide.

While the Federal Government, through the Nigerian National Petroleum Company Limited (NNPC), is working to secure crude supplies for the refinery via international traders, officials cautioned that this may not immediately reduce prices for consumers.

 

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