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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
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Kirsten1803
Kirsten1803
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droversointeru
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FG Withdraws Charges Against ‘Fake Agency’ DG, Adeniyi Adeyemi

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Contempt: Four SANs to be Served by Courier

Following observed mis-steps, the Federal Government of Nigeria has withdrawn the eight-count criminal charge brought against the alleged fake Director General (DG) of the Presidential Foreign Intervention Promotion Council (PFIPC), Adeniyi Adeyemi.

Biztellers reports that the matter, in accordance with the counsel of the Attorney General of the Federation (AGF) and Minister of Justice, Prince Lateef Olasunkanmi Fagbemi, (SAN), the matter will be filed at the High Court of the Federal Capital Territory (FCT), instead of the Federal High Court (FHC).

Consequently, upon an unopposed application for termination by the prosecution counsel and Director of the Public Prosecution of the Federation (DPPF), Rotimi Oyedepo (SAN), on Monday, Justice Mohammed Umar of a Federal High Court, Abuja on Monday, struck out the matter.

READ ALSO: Shell Identifies Keys to Nigeria’s Energy Future

In a motion for the termination of the charges, Oyedepo informed the court that the Attorney General of the Federation (AGF) and Minister of Justice has carried out a review of the case file of Adeyemi and the charge filed by the Inspector General of Police (IGP) and found some loopholes.

The DPPF added that the documents allegedly forged by Adeyemi during his operations of the fake agency are those that can be prosecuted by the High Court of the Federal Capital Territory (FCT).

He also informed the court that a new charge has been filed at the High Court of the FCT and that Adeyemi would be expeditiously arraigned afresh.

He therefore urged the judge to strike out the charge as required by law.

Following no objections from Ibrahim Angulu (SAN), who stood in for Adeyemi, Justice Umar subsequently terminated the charge.

Adeniyi, 38, was being tried alongside two others whose whereabouts are unknown, on charges bordering on conspiracy and forgery.

The two others said to be at large were identified as Femi (surname unknown) and Anu (surname unknown).

The charge marked: FHC/ABJ/CR/25/2025, was entered against the defendant by the DPPF.

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NEWS

Shell Identifies Keys to Nigeria’s Energy Future

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To secure a bright energy for her teeming population, Nigeria must sustain the momentum of reform, accelerate investment, and deepen partnerships.

This view was expressed by Managing Director, Shell Nigeria Exploration and Production Company of Nigeria Limited (SNEPCo) Ronald Adams in Lagos at the weekend.

Delivering a keynote address at the Africa Energy Conference (AEC) of the Lagos Business School (LBS), Adams called for regulatory certainty through efficient execution of reforms, sustained investment appeal to enable projects to move more swiftly from opportunity to production and partnership by operators, regulators, NNPC Limited and communities to unlock the full value of Nigeria’s resources.

Adams cited Nigeria’s huge oil and gas resources as an advantage but pointed out: “Resources alone do not guarantee prosperity. Prosperity comes when resources are matched with investment, technology, sound policy and disciplined execution. Success will be determined not by the size of our resources, but by our ability to convert them into investment and economic growth.”

Adams pledged the support of Shell towards a bright energy future of Nigerians. He said: “For more than six decades, Shell has been part of Nigeria’s energy journey. Together with our partners, we have helped develop major energy infrastructure, supported Nigerian businesses, invested in talent, and contributed to economic development. Bonga remains a powerful example of what technology, partnership and Nigerian capability can achieve in deepwater operations. Today, that story continues through Bonga North.”

READ ALSO: ADF Targets 5 Million Students, 2 Million Vulnerable Women

Issuing a clarion call for action by all stakeholders, he added: “The world is not standing still. Capital is moving, technology is advancing and competition is intensifying. The countries that attract investment tomorrow are those that improve competitiveness today. Nigeria has begun that journey. Our task is to sustain the momentum and translate reform into projects, projects into growth, and growth into shared prosperity.”

The conference, the 4th in the series had at its theme; “Securing Nigeria’s Energy Future: Policy Reform, Capital Mobilisation, and Pathways to a Sustainable Power and Energy Market” and was attended by top government officials, industry captains, energy professionals, and students.

Lagos State Deputy Governor Obafemi Hamzat represented Lagos State Governor Babajide Sanwo-Olu as the guest of honour. SNEPCo was a principal sponsor of the Africa Energy Conference (AEC) and mounted a well-received exhibition on its deepwater operations and social investments across Nigeria.

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NEWS

Katsina Students Get ₦689.79m Bursary as Gov Radda Doubles Allowances

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Katsina State Governor, Dikko Umaru Radda, has flagged off the disbursement of ₦689.79 million in bursary payments to 19,318 continuing students across 97 institutions for the 2025/2026 academic session.

The disbursement follows a 100 per cent increase in academic bursary rates, marking the first adjustment since 2007.

The latest payment forms part of the state government’s broader investment in education and student welfare, with cumulative bursary disbursements and related student awards under the administration reaching ₦3.29 billion.

SEE ALSO: Dikko Radda Of APC Wins Katsina Governorship Election

More than 174,000 beneficiary payments have been recorded across successive payment cycles.

Increased Allowances for Veterinary and Law Students

Under the revised scholarship support framework, allowances for Veterinary Medicine students have increased by 150 per cent for students in the 300 and 400 levels and by 200 per cent for those in the 500 and 600 levels.

Support for Nigerian Law School students and academic excellence awards has also continued.

The state government has also approved a scholarship programme for 1,700 students, with 50 beneficiaries drawn from each of the state’s 34 local government areas.

The programme is designed to support tuition fees, registration and other educational expenses.

₦6bn Scholarship Trust Fund

The government has made provision for ₦6 billion in seed funding for a scholarship trust fund intended to strengthen educational financing.

The fund is expected to support specialised scholarship opportunities in fields including engineering, medicine, Artificial Intelligence and mechatronics.

The state’s foreign scholarship initiatives have also supported 118 students studying Medicine, Artificial Intelligence and Bioengineering in Egypt, Ethiopia and China, with approved educational and living expenses covered by the government.

More Scholarship Opportunities

Other educational support initiatives include 34 maritime scholarship beneficiaries and seven students receiving 50 per cent financial support at the Nigerian College of Aviation Technology, Zaria.

The state has also nominated 34 candidates for MBBS studies in Russia, identified 70 prospective master’s degree candidates and selected 10 candidates for Qur’anic Sciences scholarships in Ghana.

These initiatives form part of the state’s broader efforts to expand access to education across different fields and levels of study.

Scholarship Board Strengthens Accountability

The Katsina State Scholarship Board has also strengthened its application, verification and payment systems.

As part of its accountability measures, the board interviewed more than 14,925 fresh applicants and returned approximately ₦86 million in unclaimed funds to the state government.

The state also acknowledged the contributions of the Nigerian Education Loan Fund (NELFUND), the Tertiary Education Trust Fund (TETFund) and the National Information Technology Development Agency (NITDA) in expanding access to educational financing and digital learning resources.

Radda Inaugurates Tinubu/Dikko Education Beneficiary Network

As part of the activities, Radda inaugurated the Tinubu/Dikko Education Beneficiary Network (TDEBNET), a voluntary organisation comprising parents and beneficiaries of educational programmes.

Members of the organisation expressed support for the re-election bids of Radda and President Bola Ahmed Tinubu in 2027.

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