Dangote Fuel Distribution Under Fire: Unions Accused, 'Free Delivery' Scam Alleged!

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged its members to promptly register with Dangote Refinery and Petrochemicals Limited in anticipation of direct fuel supply commencing on Monday, September 15, 2025. This directive, issued by IPMAN President Alh. Abubakar Maigandi and National Secretary Hon. James Terlumun Tor, follows reports that the refinery is set to begin its fuel distribution initiative, which includes a reduction in the gantry price of Premium Motor Spirit (PMS). Specifically, Dangote announced that fuel will retail at N841 per litre in Lagos and other South-Western states, while Abuja, Rivers, Delta, Edo, and Kwara states will see prices of N851 per litre.
The initial phase of this distribution will cover the Federal Capital Territory, Lagos, Kwara, Delta, Edo, Rivers, and South-Western states, with plans for nationwide expansion as more compressed natural gas (CNG)-powered trucks are delivered. This transition to CNG is projected to yield significant economic benefits, saving the Nigerian economy over N1.8 trillion annually. The initiative aims to cut fuel distribution costs, reduce pump prices, and alleviate inflationary pressures, particularly benefiting over 42 million micro, small, and medium enterprises (MSMEs) through lower energy costs and improved profit margins. The Dangote Group is investing over N720 billion in this program, which also seeks to revitalize dormant filling stations across the country and create numerous direct employment opportunities, including roles for truck drivers, filling station managers, and fuel attendants. Stakeholders have been called upon to partner with the initiative to maximize its economic impact.
However, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has vehemently opposed Dangote Refinery’s fuel distribution scheme, labeling it as misleading and a scam. Reacting to a dispute between the National Union of Petroleum and Natural Gas Workers (NUPENG) and the refinery, DAPPMAN argued that the initiative imposes additional financial burdens on petroleum marketers. They clarified that the claim of “free delivery” is deceptive, as marketers are mandated to lift at least 25 percent of their allocations directly from the refinery gantry, exclusively using Dangote-owned trucks, and paying commercial rates based on their destination. This arrangement, DAPPMAN asserts, restricts operational flexibility and undermines the supposed cost relief narrative for the local market.
DAPPMAN further accused the Dangote Refinery of employing strategic timing for its repeated fuel price reductions, often coinciding with other importers having active cargoes, thereby creating price shocks that stifle competition and financially strain market participants, including the refinery’s own domestic customers. More critically, DAPPMAN highlighted a concerning pattern where the refinery allegedly offers lower prices to international buyers while quoting higher rates to local off-takers, which contradicts its public claims of prioritizing Nigerians and places undue burden on domestic businesses already operating on tight margins.
Adding another layer to the complex situation, a labor dispute has emerged between the Dangote Refinery and NUPENG. The Department of State Services (DSS) has intervened on multiple occasions, attempting to prevent the breakdown of a truce established earlier. A Memorandum of Understanding (MoU) was signed at the DSS Headquarters in Abuja, ostensibly granting workers the freedom to join any union of their choice without interference.
Despite the MoU, financial advisor and educator Kalu Aja has criticized NUPENG, suggesting the union is holding the country to ransom. Aja pointed out that NUPENG is threatening to embark on a strike because the Dangote Group declined to join their private union. He argued that this action serves as clear evidence of the union's tendency to exert pressure on Nigerians, underscoring the broader implications of the dispute for the nation's fuel supply and economic stability.
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