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Home»Oil & Gas/Mineral Resources»Dangote rejects DAPPMAN’s ₦1.5trn subsidy demand
Oil & Gas/Mineral Resources

Dangote rejects DAPPMAN’s ₦1.5trn subsidy demand

Abdoulaye KayBy Abdoulaye KaySeptember 18, 2025Updated:September 18, 2025No Comments2 Mins Read
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The Dangote Petroleum Refinery has reaffirmed its opposition to the subsidy request by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), describing the call for an annual ₦1.505 trillion subsidy as both unfair and unsustainable.

In a statement issued on Wednesday, September 17, 2025, and published in several national dailies, the refinery explained that DAPPMAN’s demand stems from its insistence on a ₦75 per litre adjustment for coastal logistics and pumping expenses. Dangote argued that this effectively amounts to pushing the refinery to absorb costs and transfer them to Nigerian consumers.

“Marketers are demanding that we discount ₦70 per litre in coastal freight, NIMASA fees and other associated costs, plus ₦5 per litre for pumping into vessels,” the statement read. “This translates to an additional annual subsidy burden of ₦1.505 trillion, which we cannot accommodate.”

The refinery stressed it would not revisit the era of government-backed fuel subsidies, which it said drained Nigeria’s resources and encouraged inefficiencies in the downstream oil sector.

Citing Nigeria’s projected daily consumption of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), Dangote said the marketers’ demands would artificially inflate costs by trillions of naira.

It added that the refinery has adequate capacity to meet both domestic needs and export requirements, maintaining a steady monthly stock of 500 million litres of refined products. Between June and September 2025 alone, Dangote exported 3.2 million metric tonnes of PMS, AGO and aviation fuel, while marketers imported 3.7 million tonnes of similar products—an action the refinery described as “dumping,” harmful to Nigeria’s economy and citizens.

Reaffirming its commitment to the federal government’s economic reforms under President Bola Ahmed Tinubu, the refinery said its operations are aimed at stabilising the naira, easing the impact of subsidy removal, and boosting Nigeria’s role as a refining hub.

“Dangote Petroleum Refinery remains firmly committed to the progress and well-being of Nigeria,” the statement concluded. “We will continue to partner with the government and stakeholders to ensure accountability and national development.”

Dangote DAPPMAN Subsidy demand
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