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‘No Hidden Subsidy’ – Dangote Refinery Tells Marketers To Pay Own Logistics
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.
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“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.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has invited global investors to participate in the bid for the 2026 Licensing Round, which has 40 oil and gas blocks on offer.
The Commission Chief Executive, Oritsemeyiwa Eyesan, informed investors at the 2026 ADIPEC Exhibition and Conference in Abu Dhabi on Monday, November 2, 2026 that Nigeria offers a stable climate amid global energy tensions.
She urged investors to look to Nigeria and take advantage of the opportunities and revealed that the licensing round portal will officially open on November 20, 2026.
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The NUPRC boss said this during a roundtable discussion titled, ‘Energy Sovereignty in an Interconnected World: Aligning National Priorities, Markets and Global Security’.
She said, “We are expecting investors to turn to Nigeria. We are going into another licensing round, and we will launch our bid portal on November 20. We expect to see interested investors because the environment is a lot more competitive.
“We have set a very attractive fiscal framework for investors. The overall environment is much more secure. We have been able to manage costs with a lot of incentives for investors, and we expect to see investors take up the offer when we open the portal.”
The NUPRC boss noted that since the passing of the Petroleum Industry Act in 2021, as well as the executive orders signed by President Bola Tinubu, Nigeria has seen an improved investment climate.
Eyesan said that between 2021 and 2026, the NUPRC held at least four successful licensing rounds, which brought more investment into the country.
This marks a departure from the pre-PIA era, when licensing rounds were less frequent.
The CCE said Nigeria has huge energy potential, as it sits on 215 TCF of gas, but daily production is barely 7 bcf.
This presents an opportunity to investors, especially as key gas infrastructure, such as pipelines, is being built, she said. The stars are already aligned. For gas infrastructure, we just completed very major infrastructure projects that will unlock gas supply in the country and the sub-region.”
We have two major projects on the drawing board to move gas through the Nigeria-Morocco Atlantic Gas Pipeline and the Trans-Sahara Gas Pipeline.
Again, this gas will go to Europe and will also meet regional demand. So, Nigeria is positioned to meet not just domestic supply,” the CCE stated.
Eyesan maintained that as many countries discover petroleum resources, the race for investment has become more competitive.
She said Nigeria was already ahead of the game, as it had made certain modifications to attract the right capital.
“We understand that investors will prize execution risk, cost, delays and also uncertainty, and so what we have done in Nigeria is to ensure that we guard against these risks and then attract the investment required to enable us to unlock the huge resources we sit on,” the NUPRC boss said.
President Bola Ahmed Tinubu has described his emergence as Nigeria’s President as a special favour from Almighty Allah, saying his position as Commander-in-Chief of the Armed Forces is a privilege that must be matched with dedicated service to the country.
Tinubu made the remarks while reflecting on his spiritual journey to Saudi Arabia for the lesser Hajj (Umrah), during which he was granted access to pray inside the Holy Ka’abah in Makkah.
The President expressed gratitude to Saudi Arabia’s King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman for granting him and members of his Nigerian delegation the rare privilege.
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Speaking after the spiritual exercise, Tinubu said his emergence as Nigeria’s leader was an extraordinary blessing, considering the millions of people in the country.
“I have faith in that, and I believe extremely well that He has done me and my country a great favour. Out of many millions of people, to be the President and Commander-in-Chief is a favour that only Almighty God can do to a human being,” he said.
The President also disclosed that he used the opportunity to pray for wisdom and resilience to continue serving Nigerians, expressing confidence that his prayers had been answered.
“Well, I asked for wisdom and resilience to continue to serve the people. I know that prayer has been granted,” Tinubu said.
Recalling his previous Umrah pilgrimage before the 2023 presidential election, he said he had asked Allah to bless the journey and promised to return to express gratitude.
Tinubu also reflected on the message in Surah Aal-Imran, Verse 26 of the Holy Qur’an, which establishes Allah as the ultimate owner of sovereignty and authority, with the power to give and take leadership.
He said the message reinforces the need for those entrusted with positions of authority to exercise power responsibly, with humility and in the interest of the people.
“There is no other God but Almighty Allah. He is the giver and the taker. He owns power and authority,” the President said.
He reaffirmed his commitment to building a prosperous Nigeria, investing in the future of young Nigerians and pursuing development in line with the aspirations of the people.
Tinubu described the opportunity to enter the Holy Ka’abah as a historic and deeply cherished spiritual experience, adding that it reflected the longstanding friendship and cooperation between Nigeria and Saudi Arabia.
The Ogun State Police Command has received three major honours at the Nigeria Union of Journalists (NUJ), Ogun State Council’s Golden Jubilee Press Week, with Commissioner of Police Bode Ojajuni named a Golden Jubilee Ambassador.
The Command received the Shield of Public Safety Award, while its Police Public Relations Officer, DSP Oluseyi Babaseyi, was presented with the Vanguard of Public Safety Award.
The recognition formed part of activities marking the 50th anniversary of the NUJ in Ogun State, which coincides with the state’s 50th anniversary.
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According to a statement released on Monday, November 2, 2026, by the Command’s spokesperson, DSP Babaseyi, the awards recognised the Command’s commitment to public safety, proactive policing and effective engagement with the media.
The Golden Jubilee Press Week, held from October 26 to November 1, 2026, was themed, “Truth, Trust and the Press: Protecting Democratic Choice and Rebuilding Public Confidence in Journalism.”
Ojajuni also participated in a panel session during the celebration, where he urged journalists to uphold truth, professional ethics and patriotism, stressing the importance of responsible journalism to national development and public confidence in public institutions.
While receiving the Shield of Public Safety Award, the police commissioner attributed the Command’s achievements, particularly the impact of Operation KOSAYE, to the strategic direction of the Inspector-General of Police, IGP Olatunji Rilwan Disu, under the Handshake Patrol initiative.
He explained that the operation was carried out on the directive of the IGP through collaboration between the Ogun and Lagos State Police Commands, with support from the governors of both states.
According to him, the initiative strengthened security cooperation between the two states and improved coordinated efforts to prevent and combat criminal activities.
Ojajuni was also named among 50 distinguished personalities recognised as Golden Jubilee Ambassadors.
The honour reflects his leadership and previous contributions to policing in Ogun State, where he served as Deputy Commissioner of Police in charge of the State Criminal Investigation Department and Squadron Commander of the 16 Police Mobile Force, Abeokuta, before becoming commissioner.
Similarly, Babaseyi received the Vanguard of Public Safety Award in recognition of his contributions to police-public communication, media engagement and public safety advocacy.
The commissioner dedicated the honours to the Inspector-General of Police and officers of the Nigeria Police Force, acknowledging their commitment and sacrifices in protecting lives and property.
The Command also commended the NUJ Ogun State Council, led by its chairman, Comrade Wale Olanrewaju, for the recognition and its role in promoting constructive engagement between journalists and security institutions.
It reaffirmed its commitment to strengthening its relationship with the media, noting that effective policing depends not only on operational deployment but also on public trust, timely information and stakeholder engagement.
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