The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has strongly opposed Dangote Refinery’s plans to distribute petroleum products directly to retail outlets across the country.
Over the weekend, Dangote Refinery disclosed its intention to expand nationwide fuel distribution. But in a statement issued on Monday and signed by the association’s national public relations officer, Joseph Obele, PETROAN warned that the move could result in a disguised monopoly and threaten jobs across the sector.
“The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns about Dangote Refinery’s forward integration strategy, cautioning that it could create a monopolistic environment and cause significant job losses in Nigeria,” the statement read.
PETROAN argued that with a refining capacity of 650,000 barrels per day, Dangote should be competing globally, not engaging in local distribution within the downstream sector. It noted that the refinery—one of the largest in sub-Saharan Africa—should focus on meeting domestic fuel needs and exporting surplus, rather than entering the retail space.
The association recalled that it had previously flagged concerns over Dangote’s intent to dominate the downstream sector, warning that such dominance could lead to price fixing, reduced competition, and exploitation of consumers, “as witnessed in other industries where the company operates.”
It also accused Dangote of planning to use a pricing penetration strategy—slashing prices to gain market share and eventually push out existing filling station operators.
“This could result in the mass closure of filling stations across the country and cause widespread unemployment,” the statement added.
PETROAN further warned that the introduction of 4,000 compressed natural gas (CNG)-powered tankers by the refinery threatens the livelihoods of thousands of existing truck drivers and vehicle owners.
“Though CNG trucks may offer cheaper transport, the move could displace many in the current petroleum logistics chain,” the group said.
The association highlighted that multiple stakeholders, including modular refineries, stand to lose significantly if Dangote’s dominance grows unchecked.
“Filling station operators may shut down due to Dangote’s aggressive pricing strategy. Local suppliers could lose business as the company supplies directly to end-users. Even telecom diesel suppliers may see their market share shrink,” the statement warned.
PETROAN concluded that Dangote appears intent on establishing full control of the downstream sector—a move the group believes will ultimately harm Nigerian consumers.
