Groups Alert FG over Alleged Attempt by Dangote to Monopolize Petroleum Sector

Groups Alert FG over Alleged Attempt by Dangote to Monopolize Petroleum Sector

JOEL OLADELE, Abuja

In an open letter addressed to President Bola Tinubu, on Tuesday, two prominent civil society organizations have raised urgent concerns over what they described as an alarming attempt by Africa’s richest man, Alhaji Aliko Dangote, to monopolize Nigeria’s petroleum sector.

The letter, signed by Yahaya Danjuma of the Coalition of Civil Society Organisations for Economic Justice and Silvia Okpanachi of the Nigeria Youth Vanguard for Economic Freedom, called for immediate government intervention to protect the interests of independent marketers and ensure fair competition in the industry.

The letter highlighted growing apprehension among stakeholders in the petroleum distribution landscape, particularly following reports from credible sources such as Punch Newspaper and Bloomberg.

“We are compelled by national interest to sound the alarm bell against what appears to be a carefully orchestrated attempt to monopolize the petroleum downstream sector, under the guise of private investment,” the letter stated.

Earlier, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), representing over 200,000 petrol stations, has expressed grave concerns regarding a proposed distribution model by Dangote Refinery.

They warned that this model “poses an existential threat” to their operations, potentially pushing thousands of independent marketers out of business and leading to massive unemployment. “This move is a job loss threat to Nigeria,” PETROAN cautioned, urging the Federal Government to intervene immediately.

The letter also raised alarms about Dangote’s acquisition spree, noting that he has completed a massive 650,000-barrels-per-day refinery project and is reportedly buying up existing refineries, including the Port Harcourt Refinery.

According to the group, this situation raises serious questions about fair competition and market equity.

“Such domination is antithetical to the spirit of the Petroleum Industry Act (PIA) and the open market economy that Your Excellency and this administration have consistently promised Nigerians,” the letter asserted.

In light of these concerns, the groups outlined several demands and recommendations for the government. They urged President Tinubu to direct the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to launch a transparent investigation into the Dangote Group’s fuel distribution strategy.

“We strongly recommend that the Federal Government places a moratorium on the sale or acquisition of any further public refineries or strategic petroleum infrastructure by any single individual or corporate entity,” they stated.

The letter also emphasized the importance of protecting independent retailers and workers, noting that small and medium petroleum marketers are vital for local fuel access across towns and villages.

“Any policy or private strategy that threatens their survival must be rebuffed in the interest of national economic balance and employment,” the authors wrote.

Additionally, they called for an emergency stakeholder meeting involving the Ministry of Petroleum Resources, PETROAN, the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Dangote Group, civil society organizations, and labor unions to determine a sustainable and inclusive model for fuel distribution in the country.

In their final appeal to President Tinubu, the authors reminded him of the trust placed in him by Nigerians to defend economic liberalism and fairness.

“As you fight daily to stabilize the economy, you must not allow any individual or group to weaponize private investment as a tool of national economic capture.

A nation where only one man determines who sells petrol, at what price, and through which outlets, is not a free nation,” they urged.