The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised serious concerns over the Dangote Refinery’s planned expansion into the distribution of petroleum products, warning that such a move could create a monopoly and lead to significant job losses across the entire petroleum value chain.
In a recent interview with Newsmen, the National President of PETROAN, Dr. Billy Gillis-Harry, described the development as “a national concern,” urging regulatory authorities to intervene before the market is overrun by the influence of a single dominant player.
“This isn’t just PETROAN’s concern it’s a Nigerian concern,” he said. “Thousands of independent outlets are currently meeting the energy needs of the country. If one company—Dangote Petroleum Refining Company—takes control of refining, storage, transportation, marketing, and retail, it will crowd out existing players, leaving many without jobs.”
According to Dr. Harry, the petroleum sector’s value chain must remain segmented to protect the interests of businesses and workers alike. “Refining should be handled by refineries, storage by depots, logistics by transporters, marketing by marketers, and retail by retailers,” he emphasized. “Once one company controls everything, it disrupts this balance and threatens the survival of other stakeholders.”
Dangote Group recently revealed plans to roll out 4,000 petroleum product delivery trucks and establish more than 100 compressed natural gas (CNG) stations nationwide as part of its downstream operations—moves aligned with the Federal Government’s energy transition agenda. However, the announcement has alarmed many in the industry.
While the expansion appears promising at face value, Dr. Harry warned that its deeper implications could be harmful. “This strategy would eliminate the role of independent transporters, retail station owners, and marketers—businesses that provide jobs for countless Nigerians,” he said.
He also cited existing regulatory frameworks such as the Petroleum Equalization Fund, which was created by Decree No. 9 of 1975 and amended in 1989, stressing that no company should assume the role of a regulator. “There are laws and guidelines. It is not for one company to define or implement them,” he said.
Dr. Harry further criticized the Dangote Group for proceeding without consulting stakeholders. “To my knowledge, there was no prior engagement or stakeholder meeting. We have established communication across PETROAN, DAPMAN, IPMAN, NUPENG, NARTO, and others. We only heard about this in the media.”
He called on government agencies to step in and ensure that the petroleum industry remains competitive, inclusive, and sustainable for all players.
