Lagos, Nigeria – The Petroleum Retail Owners Association of Nigeria (PETROAN) has publicly accused the Dangote Refinery of anti-competitive practices, claiming that the company’s business model seeks to monopolize Nigeria’s petroleum market and stifle smaller players. This accusation has stirred discussions within the energy sector, as stakeholders weigh the impact of Nigeria’s largest refinery on the industry’s competition dynamics.
In a recent statement, PETROAN representatives expressed concerns that Dangote Refinery’s dominant market position could lead to price manipulation and limit opportunities for other players in the petroleum retail sector. The association has appealed to regulatory bodies, including the Federal Competition and Consumer Protection Commission (FCCPC), to ensure fair practices and maintain a level playing field for all industry participants.
“The Dangote Refinery holds an influential position in our industry,” PETROAN said in its statement. “While we welcome new investments in local refining, we urge regulatory agencies to monitor the refinery’s activities to prevent monopolistic control that could harm consumers and other businesses.”
Dangote Refinery, owned by Nigerian billionaire Aliko Dangote, was established with the aim of addressing the country’s long-standing dependence on imported petroleum products. The refinery, located in Lagos, is Africa’s largest, with a capacity to produce 650,000 barrels of oil per day. Its operation is expected to reduce Nigeria’s fuel imports significantly and stabilize fuel prices domestically.
However, PETROAN’s concerns highlight a potential downside of such a dominant entity. The association warns that if unchecked, the refinery’s market power could lead to restrictive business practices that might push smaller operators out of the market. This, they argue, would ultimately reduce choices for Nigerian consumers and could lead to higher fuel prices over time.
In response, representatives of Dangote Refinery have denied any intention to monopolize the market, emphasizing that their focus remains on bridging Nigeria’s fuel supply gaps. The refinery spokesperson added that competition remains at the heart of the sector’s growth and that their operations are fully compliant with Nigerian laws and regulations.
Industry experts suggest that while Dangote Refinery’s large-scale operations could benefit Nigeria by reducing fuel import reliance, the government must ensure that regulatory frameworks are in place to maintain competition within the market. The outcome of this debate could shape the future of Nigeria’s petroleum industry, as stakeholders look for a balance between encouraging large investments and supporting smaller, independent businesses.
