It looks like there’s tension building in Nigeria’s downstream oil sector, and it’s shaping up to be Dangote Refinery versus the big oil marketers. Aliko Dangote, Africa’s richest man and owner of the $20 billion Dangote Refinery, says he’s in a serious fight for survival—even after finally kicking off operations at the massive plant in Lekki.
Dangote didn’t mince words recently when he claimed some oil “mafias” and entrenched interests were doing everything possible to sabotage his refinery. According to him, these players—used to cashing out from the importation of petrol—are not happy that a Nigerian refinery is now capable of reducing Nigeria’s reliance on foreign fuel.
Despite the refinery ramping up production, many major oil marketers are still importing fuel in large volumes. Between March 1 and May 9 this year alone, Nigeria imported over 2.5 billion litres of petrol, costing trillions of naira. Meanwhile, these marketers have been hesitant to buy directly from Dangote’s facility—even as local production improves.
So, what’s the issue? Dangote claims it’s pure sabotage. He said oil companies are refusing to supply his refinery with crude, despite Nigeria’s crude supply laws. He also accused the Midstream and Downstream Regulatory Authority of issuing licenses for substandard fuel imports, forcing him to take the matter to court.
But not everyone agrees with his view. Some marketers say this is just business—competition, not conspiracy. According to them, Dangote’s prices, while beneficial for Nigerians, can hurt other players’ bottom line. They’re asking for a level playing field, not monopoly.
The big worry among marketers is that Dangote could dominate the market so heavily that no one else gets a fair shot. DAPPMAN, a major association of depot owners, says they’re already struggling to access bulk supply from Dangote, claiming the refinery only prefers select buyers. They even raised concerns that sudden price cuts have left many of them taking losses.
In the end, it’s a classic business face-off. Dangote says he’s ready to fight to the finish—and insists Nigerians will benefit. But marketers are pushing back, warning that if only one player controls everything, the long-term effects could be rough for the market. The oil war is far from over.
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