The Association had issued a 7-day ultimatum to the Refinery, to either retract the smuggling allegation against it, or face legal action.
Dangote Petroleum Refinery has challenged the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to feel free to file charges against it in court, following its position regarding product smuggling, published on the 15th of September, in several national dailies and online platforms.
A statement by the Refinery on Wednesday night stressed that any party aggrieved by the content of the publication was “free to seek redress through appropriate legal channels.”
It noted that it would not be swayed by the seven-day ultimatum issued by DAPPMAN, and is fully prepared to defend its position through all legitimate means.
DAPPMAN on Wednesday responded to Dangote on several allegations, among which was the diversion of petroleum products to neighbouring countries.
The Association said Dangote’s statements implicitly accused the Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA), Customs, and border agencies of regulatory failure.
“This not only undermines public confidence in these institutions but poses a subtle threat to the President Bola Ahmed Tinubu administration’s reform agenda. The administration has supported deregulation and competition. DAPPMAN supports these reforms fully. The refinery’s actions suggest a preference for protectionism and dominance.”
It called on the Dangote Refinery to produce evidence or retract its allegation.
The Association issued the Refinery a 7-day ultimatum to retract the allegation or face legal action.
“We challenge Dangote Refinery to present verifiable evidence that DAPPMAN members are diverting products to neighbouring countries.
“Smuggling is a national security matter. If any member is complicit, let the relevant agencies act.
“We issue a 7-day ultimatum to the refinery to either retract this allegation or provide documented proof. If neither occurs, we reserve the right to seek legal redress,” DAPPMAN said in a statement.
In a terse response, Dangote alleged that DAPPMAN demanded an annual subsidy of ₦1.505 trillion to enable members to match the refinery’s gantry prices at their own depots.
The refinery disclosed that although it offered petroleum products to marketers at its gantry price, DAPPMAN insisted on taking delivery via coastal logistics, an option that would add ₦75 per litre in extra costs.
Based on daily consumption volumes of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), this amounts to an additional annual cost of N1.505 trillion (N1,505,625,000,000), which, according to Dangote, the Association effectively asked the refinery to absorb or pass on to Nigerians.
“Specifically, the marketers are demanding that we discount N70/litre in coastal freight, NIMASA, NPA, and other associated costs, as well as N5/litre for the cost of pumping into vessels to enable them to transport products from our refinery to their depots in Apapa and sell at the same price as our gantry.
“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 N1.5 trillion, a practice that historically defrauded the Federal Government for many years. DAPPMAN and other marketers are welcome to lift products directly from our gantry and benefit from our logistics-free initiative.”
The refinery alleged that its refusal to comply with DAPPMAN’s subsidy request is the core reason behind recent public criticisms and attacks.
It reiterated that the refinery has sufficient capacity to meet domestic demand and support exports as it consistently maintains a closing stock of 500 million litres of refined products in its tanks each month.
“Between June and September, the refinery exported a combined total of 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes over the same period, an action that amounts to dumping, which is detrimental to the Nigerian economy and the well-being of its citizens,” it said.
Reaffirming its commitment to supporting the reform agenda of President Bola Tinubu, the refinery stated that through various strategic interventions, it has helped stabilise the naira, cushion the effects of fuel subsidy removal, position Nigeria as a refining hub, boost foreign exchange earnings, and create employment opportunities across multiple sectors.
“We enjoy strong working relationships with government agencies and remain committed to supporting their efforts, while not hesitating to hold institutions accountable where necessary.
“Dangote Petroleum Refinery remains firmly committed to the progress and well-being of Nigeria, and is open to partnerships with patriotic and responsible stakeholders in pursuit of national development,” it noted.
