IPMAN Warns Against Monopoly Amid Dangote Refinery’s Free Fuel Distribution Initiative

•Urges FG to ensure open, equitable access to depots

Blessing Ibunge in Port Harcourt

The Independent Petroleum Marketers Association of Nigeria (IPMAN), Rivers State Chapter, has warned against the risk of monopoly as Dangote Petroleum Refinery is set to distribute petrol and diesel to marketers, others across the country.

The group expressed concerns about possible monopolising the products, which distribution as announced by Dangote refinery would commence on August 15, 2025.

IPMAN gave the warning in a statement signed and made available to journalists yesterday, in Port Harcourt, by its State chairman, Mr. TekenaIkpaki.

Ikpaki stated, “we must not overlook the broader implications it holds for Nigeria’s downstream sector. According to the refinery, the initiative will be backed by a fleet of 4,000 newly acquired Compressed Natural Gas (CNG)-powered tankers.

“This unprecedented scale of distribution, if left unchecked, could significantly undermine the independence and survival of thousands of small and medium-scale operators across the country.”

Also acknowledging and supporting the development of domestic refining capacity, IPMAN cautioned against allowing a single entity to dominate the entire fuel supply chain from refining to retail.

Ikpaki expressed the belief that “Such control poses a clear threat to free market competition and opens the door to monopolistic practices that could destabilize the livelihoods of over 10,000 independent marketers nationwide”.

The downstream sector thrives on diversity and accessibility. A monopolized system, regardless of initial incentives or goodwill gestures, will eventually distort market pricing, limit supply options for retailers, and push out smaller players who lack the resources to compete with large-scale, vertically integrated operations.”

To prevent long-term damage to the sector, IPMAN Rivers called on the federal government, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and other relevant agencies to enforce the anti-monopoly provisions of the Petroleum Industry Act (PIA).

They also seek that the federal government should “Ensure open, equitable access to depots and supply infrastructure. Monitor pricing strategies and supply agreements for fairness and transparency.”

They added that the government and other relevant agencies should “Provide support and protection for independent logistics providers and marketers.

This is not an attack on progress or investment. It is a call to protect the integrity and inclusivity of Nigeria’s petroleum distribution landscape. Without clear safeguards, this initiative could mark the beginning of a dangerous monopoly that the country can ill afford”, Ikpaki expressed.