The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed concerns over plans by Dangote Petroleum Refinery to begin free distribution of petrol and diesel nationwide, warning the move could mark the onset of a dangerous monopoly in Nigeria’s downstream sector.
According to IPMAN Chairman in Rivers State, Mr Tekena Ikpaki, the plan, backed by a fleet of 4,000 newly acquired Compressed Natural Gas, CNG-powered tankers, as a veiled strategy that could severely undermine the operations of over 10,000 independent marketers and dealers across the country.
“This initiative may appear generous on the surface, but beneath the goodwill lies a disturbing threat to market diversity and the survival of small and medium-scale operators. If left unchecked, this level of vertical integration, refining, transportation, and retail, by a single company will cripple competition,” he warned.
Dangote Petroleum Refinery had recently announced plans to distribute fuel free of charge to marketers, dealers, and large-scale consumers, citing efforts to support the sector and reduce logistics burdens.
However, IPMAN has warned that such move could distort pricing, force smaller operators out of the market, and grant Dangote undue control over the entire fuel supply chain.
“We acknowledge and support the development of domestic refining capacity. But allowing a single entity to control refining, logistics, and distribution without checks or counterweights is a recipe for monopolistic dominance.”
Mr Ikpaki noted that the introduction of thousands of CNG-powered trucks by Dangote could also push out independent logistics providers, who lack the capital and fleet capacity to compete on such a scale.
“The downstream sector thrives on diversity and accessibility. A monopolized system, no matter the initial goodwill, will inevitably distort market pricing, reduce supply options for retailers, and lead to massive business closures.”
It called on the federal government, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and other oversight bodies to act swiftly and decisively to safeguard the sector.
“We call on the government to enforce the anti-monopoly provisions of the Petroleum Industry Act (PIA) ensure fair access to depots and infrastructure, monitor pricing strategies, and provide protection for independent marketers and logistics players,” IPMAN urged.
Mr Ikpaki stressed that IPMAN’s position is not an attack on investment or innovation but a necessary warning against unregulated dominance.
“This is not about stalling progress. It’s about protecting the integrity, inclusiveness, and sustainability of Nigeria’s petroleum distribution landscape. Without safeguards, this so-called generous distribution initiative could mark the beginning of a dangerous monopoly that the country can ill afford.”