The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has called for collaborative partnership with Dangote Refinery, pushing for an open-door supply policy that would grant marketers fair access to petroleum products at competitive pricing. The Association’s plea comes amid growing concerns over fuel distribution bottlenecks and persistent supply chain challenges across Nigeria’s downstream oil sector.
DAPPMAN spokesperson Ikem Ohia dismissed widespread perceptions of conflict with Dangote Refinery, emphasizing that the Association seeks collaboration rather than confrontation. Speaking on Channels Television’s The Morning Brief, Ohia stressed that their primary objective centers on ensuring consistent petroleum product availability at reasonable prices, ultimately eliminating fuel queues that continue to plague Nigerian consumers.
“Our key interest is to have petroleum products offered at reasonable prices consistently, in a way that there’s no stock-out and Nigerians no longer queue for fuel,” Ohia stated during the television interview. The spokesperson acknowledged Dangote Refinery’s dominant supplier position while highlighting access and pricing as core operational challenges requiring urgent resolution.
DAPPMAN members have invested significantly in building robust distribution networks over two decades, strategically positioning depots across key Nigerian cities including Calabar, Port Harcourt, Warri, and Lagos. This existing infrastructure represents substantial capital investment that could effectively support nationwide petroleum product distribution if properly integrated with Dangote Refinery’s supply chain operations.
“What we are asking Dangote to do is to use these depots that are already in existence for us to meet the demands of Nigerians,” Ohia explained, emphasizing the practical benefits of leveraging established distribution channels. The Association argues that utilizing existing infrastructure would optimize supply efficiency while reducing operational costs across the downstream sector.
The DAPPMAN spokesperson categorically rejected suggestions that marketers were seeking government subsidies, framing the discussion as purely commercial negotiations between business entities. Ohia emphasized that both parties operate as businessmen seeking mutually beneficial arrangements that would enhance market efficiency while serving consumer interests.
“We are businessmen; he is a businessman. We’re not asking for subsidies. We went into negotiations and are still negotiating to see how he can bridge the gap,” the spokesperson clarified. This commercial approach reflects industry maturation as stakeholders move away from subsidy-dependent models toward market-driven solutions.
DAPPMAN’s position aligns with international refinery best practices that emphasize bulk evacuation through wholesale lifting operations alongside retail gantry sales. Ohia warned that relying solely on retail distribution methods cannot adequately meet national demand, citing global industry standards that prioritize bulk off-taking partnerships for continuous production optimization.
The Association had proactively engaged Dangote Refinery before production commenced, seeking bulk lifting arrangements that would ensure efficient product evacuation. However, negotiations remain incomplete as the refinery apparently prefers working with selected partners, including only one or two DAPPMAN members, rather than implementing an open partnership system.
Many DAPPMAN members operate extensive retail networks comprising up to 300 stations capable of nationwide distribution, yet face restricted supply access that limits their operational capacity. Current supply arrangements fail to meet full market requirements, with Ohia noting that “figures don’t lie; whatever is supplied now doesn’t meet full market needs.”
The Association maintains that bulk deliveries to strategically located depots represent the most effective solution for serving Nigerian consumers comprehensively. This approach would maximize distribution efficiency while ensuring consistent product availability across diverse geographic markets.
Recent interventions by billionaire businessman Femi Otedola have intensified pressure on DAPPMAN to consider structural reforms aligned with evolving downstream sector dynamics. Otedola advised the Association to restructure operations and potentially acquire Port Harcourt Refinery rather than “resisting progress” in the rapidly changing industry landscape.
Meanwhile, PETROAN President Billy Gilly-Harris questioned whether Dangote Refinery’s 4,000 CNG-powered trucks provide sufficient capacity for comprehensive nationwide distribution, highlighting infrastructure adequacy concerns that support DAPPMAN’s partnership proposals.