CSOs Call for Strengthening of Petroleum Industry Act to Protect Local Refineries

On Friday, the Coalition of Civil Society Organisations in Nigeria (COCSON) and the Nigerian Interfaith Forum urged the Federal Government to strengthen the Petroleum Industry Act (PIA) to foster the growth and protection of local refineries.

The civil society groups also expressed strong support for the Dangote Refinery, while condemning the calls by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) for fuel subsidies.

DAPPMAN had recently appealed to Dangote Refinery to improve fuel accessibility for marketers and offer products at more affordable prices. Speaking on Channels Television’s The Morning Brief on Wednesday, DAPPMAN’s spokesperson, Ikem Ohia, emphasized that closer collaboration with Dangote would ensure steady fuel supply and eliminate nationwide fuel queues.

Responding to allegations that marketers were pushing for subsidies, Ohia clarified, “We are businessmen; he is a businessman. We’re not asking for subsidies. We entered negotiations and are still negotiating on how to bridge the gap.”

At a press briefing in Abuja, COCSON President Ibrahim Suleiman criticized DAPPMAN’s demands, warning they could lead Nigeria back to the era of “subsidy fraud.”

He stressed that Nigerians would resist any attempts to reintroduce subsidies in any form:

“Their demand is purely self-serving. Charging N75 per litre for coastal freight and operational costs—amounting to N1.5 trillion—is greed. The Dangote Refinery has exported over 3.2 million metric tonnes of refined products in just three months, proving its capacity. Meanwhile, DAPPMAN imported 3.6 million metric tonnes, promoting dumping and undermining Nigeria’s economy.”

Suleiman called on the Federal Government and National Assembly to reinforce the Petroleum Industry Act to prioritize and protect local refineries over import cartels. He also urged the enforcement of anti-monopoly laws to dismantle cartels exploiting Nigerians.

In a stern message to the public, he added:

“We call on Nigerians to boycott any marketer or depot that supports DAPPMAN’s exploitative scheme.”

Meanwhile, billionaire businessman Femi Otedola advised DAPPMAN to embrace market realities by restructuring and suggested they consider taking over the Port Harcourt Refinery instead of opposing Dangote’s business model.

Also contributing to the debate, Billy Gilly-Harris, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, noted that the current fleet of 4,000 trucks was insufficient to guarantee a steady fuel supply nationwide.

Dangote Refinery, however, maintains that it will not absorb the logistics costs marketers are attempting to transfer to it. In a recent statement, the refinery dismissed DAPPMAN’s subsidy claims of over ₦1.5 trillion as “false and unfounded,” affirming that products are sold at their gantry strictly based on production costs and regulated margins.

Dangote emphasized that marketers, like all industry players, are responsible for transporting products to their depots. The refinery also noted that the Federal Government abolished subsidies on petroleum products in May 2023.