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Dangote Refinery Halts Self-Collection Sales, Pushes Free Delivery Scheme Amid Marketers’ Backlash

Gbenro Adesina by Gbenro Adesina
September 19, 2025
in Energy, Top News
Reading Time: 3 mins read
0
Dangote Refinery stops sales to unregistered marketers

Aliko Dangote

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The Dangote Petroleum Refinery and Petrochemicals Limited has suspended self-collection gantry sales of petroleum products at its facility, effective Thursday, September 18, 2025, in a major operational shift that could reshape fuel distribution in Nigeria.

In a notice to its marketing partners, obtained Friday, the company’s Group Commercial Operations Department announced that all self-collection sales at the refinery have been placed on hold “until further notice.”

The refinery also warned that any payments made for self-collection after the effective date would be rejected.

The decision, management explained, is intended to strengthen the adoption of its Free Delivery Scheme, which sends petroleum products directly to retail outlets, and to block unregistered or third-party marketers from accessing supplies through back channels.

“We kindly request that all payments related to active PFIs for self-collection are also placed on hold until further notice. Please note that any payment made after this date will not be honoured,” the refinery stated.

Despite the suspension, Dangote assured its partners that the Free Delivery Scheme remains fully operational, urging both old and newly onboarded marketers to migrate to the system.

The company apologised for the inconvenience, describing the change as “an operational adjustment to improve efficiency.”

The move comes against the backdrop of escalating tensions between the refinery, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).

NUPENG has accused Dangote of resisting the unionisation of its truck drivers despite a government-brokered agreement, while DAPPMAN has condemned the delivery scheme, arguing that it forces marketers to depend on Dangote’s trucking network at commercial rates.

Marketers contend that transporting fuel from the refinery’s Lagos location to far-flung parts of Nigeria involves heavy logistics and coastal shipping costs that should not be transferred to them.

Dangote, however, insists that the delivery model is designed to stabilise supply, curb diversion, and cut systemic costs, while accusing marketers of seeking a disguised subsidy.

The standoff has reignited debate over labour rights, competition, and fuel pricing at a time when Nigerians are already grappling with volatile pump prices and fragile distribution logistics.

On Thursday, Dangote doubled down on its position in a statement posted on the Group’s official X handle, titled “We Stand By Our Statement on DAPPMAN … Marketers’ ₦1.505trn Subsidy Demand.”

The company maintained it would not absorb logistics costs that marketers want to push onto the refinery, dismissing such demands as unsustainable.

Industry watchers say the suspension of self-collection could particularly hurt independent marketers and small retail owners who rely on direct pickup from the refinery.

With the refinery tightening control of product distribution, pressure is expected to mount on government regulators to mediate the dispute before it destabilises the downstream oil sector.

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Tags: Aliko DangoteDangote Petroleum Refinery and Petrochemicals LimitedDepot and Petroleum Products Marketers Association of Nigeria (DAPPMAN)Nigeria Union of Petroleum and Natural Gas Workers (NUPENG)
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