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Coalition Seeks PIA Reforms to Protect Refineries

Civil society groups on Friday called on the Federal Government to strengthen the Petroleum Industry Act (PIA) to prioritize local refineries and curb the dominance of import cartels in the downstream sector.

The Coalition of Civil Society Organisations in Nigeria (COCSON) and the Nigerian Interfaith Forum made the demand at a press briefing in Abuja, expressing support for the Dangote Refinery while criticizing the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) over calls for pricing concessions.

DAPPMAN had earlier urged the Dangote Refinery to make its fuel supply more accessible and affordable to marketers. Its spokesperson, Ikem Ohia, argued during a television interview that closer collaboration with the refinery would stabilize supply and ease queues at filling stations nationwide.

COCSON president Ibrahim Suleiman dismissed the demands as self-serving, warning that they could reintroduce the country to “the dark days of subsidy fraud.” He accused DAPPMAN of seeking to impose unnecessary costs on Nigerians, including ₦75 per liter in coastal freight and operational charges, which he said would amount to ₦1.5 trillion annually.

“Dangote refinery has exported over 3.2 million metric tonnes of refined products in three months, demonstrating its capacity. Meanwhile, DAPPMAN imported 3.6 million metric tonnes, encouraging dumping and sabotaging the Nigerian economy,” Suleiman said. He urged Nigerians to resist any attempt to return to fuel subsidies and boycott marketers aligned with DAPPMAN’s stance.

The civil society groups further demanded that the National Assembly introduce stronger anti-monopoly measures under the PIA to dismantle cartels and protect local refineries from exploitative practices.

On Tuesday, businessman Femi Otedola also weighed in, urging DAPPMAN to adapt to evolving market realities. He advised the group to restructure and consider acquiring the Port Harcourt Refinery rather than opposing Dangote’s model.

The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gilly-Harris, added that the 4,000 trucks currently deployed were inadequate to guarantee steady nationwide distribution.

The Dangote Refinery, in its latest response, rejected DAPPMAN’s claims of a ₦1.5 trillion subsidy burden as “false and unfounded.” It stressed that all products are sold at its gantry based strictly on production costs and regulated margins, while transportation costs remain the responsibility of marketers.

The refinery reiterated that fuel subsidies were abolished by the Federal Government in May 2023 and said it would not assume logistics costs sought by marketers.