Nigeria’s downstream oil sector is once again at a crossroads as growing tensions between refinery operators, petroleum marketers, and truck drivers’ unions threaten the nation’s refining future. Disagreements over pricing practices, the role of domestic refineries, and labor disruptions have sparked concerns about the country’s path to refining self-sufficiency.
The Crude Oil Refiners Association of Nigeria (CORAN) has called on the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to cooperate with domestic refineries, urging them to avoid disrupting the progress made by major projects like the Dangote Petroleum Refinery. CORAN expressed concern over accusations from DAPPMAN that Dangote’s pricing strategy was designed to outcompete other players in the market. However, Dangote Group has dismissed these claims, calling them misleading.
The association highlighted the opportunity Nigeria now faces to break free from decades of oil import dependency. With large-scale refineries like Dangote’s coming online and smaller modular plants emerging, CORAN sees this as a pivotal moment for the country’s economy. However, they warned that the growth of domestic refining poses a challenge to traditional business models, particularly for depot owners and bulk marketers who thrived on imports.
CORAN stressed the importance of collaboration, urging stakeholders to view domestic refining not as a threat, but as a chance to adapt and remain relevant in the evolving market. “Logistics, distribution, and storage networks will remain essential, and there’s a significant role for marketers and depot operators in this new framework,” CORAN said.
The call for unity comes amid escalating tensions with labor unions, particularly the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Direct Trucking Company Drivers Association, who have threatened industrial action. Senator Steve Karimi, representing Kogi West, has urged these unions to negotiate rather than disrupt operations at Dangote’s refinery. He warned that any attempts to halt refinery activities could reverse the economic benefits of the Federal Government’s subsidy removal and the shift to local refining.
As Nigeria moves toward refining independence, industry experts stress that cooperation between all parties is crucial. If disputes continue, the nation’s refining revolution risks stalling before it can realize its full potential.
