By NIyi Jacobs
Independent petroleum marketers across Nigeria have raised alarm over what they describe as an emerging monopoly in the downstream oil sector, as Dangote Refinery moves to take control of nationwide fuel distribution.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), representing thousands of independent fuel station owners, said the refinery’s plan to handle not just refining but also direct distribution and retail poses a major threat to market diversity and fair competition.
President of PETROAN, Billy Gillis-Harry, speaking on behalf of the association, said the move would destabilize the current fuel supply structure that supports over 10,000 authorized retail outlets across the country. According to him, while Dangote’s achievement is laudable, no single entity should control every level of the fuel value chain—from refining to supply, distribution, and retail.
“We’re not against Dangote’s success,” Gillis-Harry said. “But it’s a monopoly in the making, and it puts thousands of independent operators at risk.”
Gillis-Harry warned that the fuel market is on the verge of becoming exclusive, with small and mid-sized marketers struggling to survive in the face of centralized control. The association fears that Dangote’s dominance could dismantle open market access, driving out competition and replicating the inefficiencies of the previous subsidy regime—only this time under private monopoly.
PETROAN is urging the government to uphold the Petroleum Industry Act (PIA), enforce anti-monopoly laws, and create a level playing field in pricing and access to loading depots and marine terminals. The association is also calling for better support for third-party logistics providers to ensure Dangote’s private transport fleet doesn’t corner the distribution market.
“This isn’t about envy,” Gillis-Harry stressed. “It’s about ensuring Nigeria’s downstream oil sector remains competitive, inclusive, and sustainable. If one company dominates all, then the liberalisation we fought for would have been in vain.”
As Dangote Refinery scales up output and market control, the fears of independent operators are beginning to echo across the industry—fueling fresh debate over how far market liberalisation should go before it begins to undermine competition.
