Business
Dangote Refinery Rejects DAPPMAN’s ₦1.5trn Subsidy Demand
Refinery insists it will not absorb logistics costs as marketers push for annual discount; warns subsidy practices defrauded Nigeria for years.
Dangote Refinery has dismissed claims by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), insisting that it will not bow to pressure to fund a subsidy of more than ₦1.5 trillion annually.
In a statement issued yesterday, the refinery said the controversy with DAPPMAN stems from marketers’ demand for an annual subsidy of ₦1.505 trillion to cover coastal freight, Nigerian Maritime Administration and Safety Agency (NIMASA) charges, Nigerian Ports Authority (NPA) fees, and pumping costs. This, according to Dangote, would translate to an additional ₦75 per litre on petrol and diesel, which the marketers expect the refinery to absorb.
“We will not increase our gantry price to accommodate such demands, nor are we willing to pay a subsidy of over ₦1.5 trillion — a practice that historically defrauded the Federal Government,” the company said. “Marketers are free to lift products directly at our gantry and benefit from our logistics-free initiative.”
The refinery disclosed that it maintains a monthly closing stock of 500 million litres, adding that between June and September it exported 3.2 million metric tonnes of refined products. Over the same period, it alleged, marketers imported 3.6 million metric tonnes, describing the imports as “dumping” that undermines the economy and welfare of Nigerians.
Dangote Petroleum Refinery reaffirmed its support for President Bola Ahmed Tinubu’s reforms, noting that its operations are helping to stabilise the naira, cushion the effect of subsidy removal, strengthen Nigeria’s refining capacity, boost foreign exchange earnings, and create jobs.
The company stressed that it enjoys a strong working relationship with government agencies but will not hesitate to hold institutions accountable where necessary.
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