The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has sounded the alarm over what it describes as a veiled move toward monopoly by the Dangote Refinery, warning that the company’s adoption of a forward integration strategy could devastate the downstream petroleum sector, eliminate competition, and trigger massive job losses nationwide.
In a statement signed by its National Public Relations Officer, Dr. Joseph Obele, PETROAN expressed concern that the 650,000 barrels-per-day refinery, recently commissioned and touted as one of the largest in sub-Saharan Africa, appears poised not just to meet local fuel demand and export surplus, but also to dominate distribution channels traditionally served by independent marketers.
“Dangote Refinery should be competing with global refiners, not operating as a distributor in the local downstream sector,” the association stated. “The entry into distribution, accompanied by pricing penetration tactics, suggests a strategic ploy to wipe out independent filling station operators, modular refiners, truck owners, and other stakeholders.”
PETROAN emphasized that the refinery’s integrated model — controlling production, transportation, and distribution — poses a serious threat to market diversity. Of particular concern is Dangote’s recent rollout of 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers, a move PETROAN says could displace thousands of truck drivers and transport entrepreneurs who rely on the conventional petroleum logistics chain for their livelihoods.
According to PETROAN, the ripple effects of Dangote’s approach could be far-reaching. Modular refineries may struggle to survive amid aggressive pricing and preferential access to crude. Filling stations could be pushed out of business if Dangote leverages its scale to undercut retail fuel prices. Diesel suppliers to telecom towers and other sectors could also see their market share shrink drastically.
“Monopolistic practices, such as price fixing and market cornering, have long-term negative consequences,” said Dr. Billy Gillis Harry, National President of PETROAN. “Nigerians should not be forced to bear the brunt of reduced competition. Regulatory bodies must intervene swiftly.”
PETROAN has called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Ministry of Petroleum Resources to act urgently. It recommends the introduction of price control mechanisms and regulatory safeguards to prevent monopolistic dominance and protect market plurality.
Among the key recommendations outlined by the association are: Promotion of fair competition in the refining and distribution sectors;
Robust regulatory oversight to detect and prevent anti-competitive behavior; Support for indigenous modular refineries through guaranteed crude oil supply; and Job protection and alternative livelihood strategies for vulnerable workers.
“It is imperative for the government to strike a balance between attracting large-scale private investment and preserving economic opportunities for smaller players,” Dr. Harry added.
As the Dangote Refinery prepares to ramp up operations, PETROAN’s warning injects urgency into the national conversation about energy independence, market equity, and the future of Nigeria’s petroleum industry.
