Dangote, DAPPMAN in Dispute Over ₦1.5tn Subsidy Claims

A major dispute has erupted between Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) over alleged fuel subsidy claims worth ₦1.5 trillion.

In a statement on Wednesday, the $20 billion, 650,000-barrel-per-day refinery accused DAPPMAN of demanding subsidies to align with its gantry price of ₦820 per litre.

“We wish to make it clear that 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 many years,” the refinery stated.

Dangote Refinery further alleged that some marketers were engaged in smuggling and diversion of petroleum products to neighbouring countries. It noted that between June and September 2025, it exported 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes within the same period.

Responding, DAPPMAN denied the allegations and issued a seven-day ultimatum to Dangote Refinery to either retract its claims or provide documented proof. The association also accused the refinery of offering foreign traders a $40/MT discount while denying Nigerian marketers access to coastal vessel loading.

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“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.

“We challenge Dangote Refinery to present verifiable evidence that DAPPMAN members are diverting products to neighbouring countries. Smuggling is a national security matter, and if any member is complicit, let the relevant agencies act,” DAPPMAN said.

The association warned that failure by the refinery to provide evidence or retract its statement within seven days would leave it with no choice but to seek legal redress.

Meanwhile, a Federal High Court on Wednesday barred the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) from embarking on strike action against Dangote Refinery over alleged anti-labour practices.

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Dangote Refinery has previously clashed with both DAPPMAN and the Nigerian National Petroleum Company Limited (NNPCL) over importation-related disputes, although it withdrew a pending lawsuit in July 2025.