The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised strong objections to the entry of the Dangote Refinery into petroleum distribution, warning that the move could create a monopolistic environment and lead to widespread job losses across the petroleum value chain.
Speaking during a monitored interview, the National President of PETROAN, Dr. Billy Gillis-Harry, described the development as “a national concern,” urging regulators to step in before the sector is overwhelmed by the dominance of a single player.
“This is not just a PETROAN issue,” Harry said. “It’s a Nigerian concern. Right now, the number of retail outlets in the country are doing business and satisfying the energy requirements of Nigerians. If one company, as massive as Dangote Petroleum Refining Company, is going to refine, store, transport, and retail products, it will wipe out other businesses and result in massive job losses.”
He added: “We recommended that refining should be left to refineries, storage to depots, logistics to transporters, marketing to marketers, and retail to retailers. That value chain must be protected.”
The Dangote Group had recently announced plans to deploy 4,000 trucks and establish over 100 compressed natural gas (CNG) stations across Nigeria as part of its downstream expansion. The move, said to be in line with the Federal Government’s energy transition goals, has sparked concern among independent marketers and stakeholders.
Dr. Harry warned that while the expansion may appear beneficial on the surface, its long-term impact could destabilise the market. “It’s going to take off transporters, retail outlet owners, and marketers from business. That affects all the jobs created by these operators in the subsector.” Citing decades-old legal frameworks, including the Petroleum Equalization Fund established by Decree No. 9 of 1975 and amended in 1989, the PETROAN president called on regulators to act. “There are rules. No one company should interpret and operationalise what regulators are meant to do.”
He accused Dangote of failing to consult industry stakeholders before announcing the move. “To my knowledge, there was no discussion with stakeholders. We have communication networks across PETROAN, DAPMAN, IPMAN, NUPENG, NARTO, and others. This announcement came through the media, not through any roundtable.”
While acknowledging Dangote’s achievements, Harry insisted that inclusivity and sustainability must guide sectoral policies. “Dangote is the pride of Nigeria and Africa, but we need his success to lift others—not shut them out. We want many strong players, not just one strongman.”
He noted that PETROAN members are already bracing for impact. “Some of our members have 300, 500, even 900 trucks. These are investments made over decades. If Dangote handles everything from refining to retail, these assets will become obsolete.”
On whether direct distribution by Dangote could lower pump prices, Harry was cautious. “If we become dependent on one source, prices could skyrocket later. We’ve seen that happen in other sectors.”
He called for urgent dialogue. “We still have up to August 15. Between now and then, stakeholders must meet and agree on a sustainable way forward. We want Dangote’s success—but not at the cost of an entire industry.”