Aliko Dangote

Petroleum marketers under the umbrella of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have raised alarm over plans by the Dangote Refinery to begin free nationwide distribution of petrol and diesel by August 15, warning that the move could drive independent operators out of business and create a dangerous monopoly in the downstream sector.

The marketers have appealed to the federal government and industry regulators, particularly the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to intervene and properly enforce the Petroleum Industry Act (PIA) to ensure fair competition.

Speaking during an interview on Channels Television’s The Morning Brief programme today, PETROAM President Billy Gillis-Harry criticised the refinery’s expansion plans, describing them as a looming threat to thousands of jobs and businesses in the petroleum supply chain, including depot operators, independent marketers, and fuel transporters.

“If one company that is as massive as our brother’s (Aliko Dangote) can do all of this, of course, it is going to take us out of business,” Gillis-Harry said. “We are struggling to feed families and get things going, and suddenly we are going to be out of business from August.”

The Dangote Refinery, a $20 billion facility with a capacity to refine 650,000 barrels per day, had on Sunday announced the commencement of direct fuel distribution using 4,000 brand-new CNG-powered tankers. The refinery also offered an incentive to bulk buyers: a credit facility where any marketer who purchases 500,000 litres will receive an additional 500,000 litres on credit for two weeks, backed by a bank guarantee.

While the announcement was met with praise in some quarters for its potential to lower prices and improve access to fuel, PETROAN members say the lack of prior consultation and the scale of the initiative risk destabilising the ecosystem.

“We don’t want one strong man; we want many strong men,” Gillis-Harry said. “We are not against competition, but it shouldn’t be the kind where one winner takes all. It should be a competition where everyone—including Nigerians—wins.”

Gillis-Harry stressed that the refinery’s licence is for refining operations and not for logistics or retail distribution, areas governed by different regulatory frameworks under the PIA.

“Everybody has to have a licence to operate in a certain way. So, if you have a licence to operate as a refinery, please refine. Let those who have licensing and operational permits for logistics and retail do so.”

He warned that ignoring these boundaries could destroy existing businesses that have long served the industry and lead to massive job losses across the value chain, particularly among tanker drivers, small-scale depot owners, and independent fuel station operators.

“We hope the regulators will interpret and enforce the PIA properly. We are calling on the government and industry leaders to get everyone on the same table and find a workable solution,” he said.

In response to the looming changes, PETROAN said it is already seeking alternative product sources to support its members and ensure they remain viable within a fair and competitive environment.

As the August rollout date for Dangote’s direct delivery system approaches, the industry braces for a potential reshaping of Nigeria’s downstream petroleum sector—one that could either usher in greater efficiency or provoke monopolistic dominance if regulatory oversight falters.

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