Onome Amuge
Nigeria’s petroleum downstream sector is bracing for a major disruption this week, as filling station owners under the umbrella of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) announced plans to suspend fuel lifting and dispensing nationwide from Tuesday, September 9, 2025.
The action, PETROAN said, is a three-day forewarning strike to protest what it describes as monopolistic practices in the sector, particularly linked to Dangote Refinery’s aggressive entry into fuel distribution. The group’s notice comes at a time when the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) is also threatening industrial action, raising the risk of a nationwide fuel scarcity.
In a statement issued on Saturday, September 6, Billy Gillis-Harry, PETROAN’s national president, said the suspension of operations was aimed at advocating for healthy competition against monopoly in the downstream sector. The statement, signed by national spokesperson Joseph Obele, underlined the group’s support for NUPENG’s proposed strike, which centres on disputes with Dangote Refinery over job security for tanker drivers and depot workers.
“PETROAN’s action is both lawful and peaceful, underscoring our commitment to promoting workers’ rights and to advancing Nigerian citizens’ interests in pricing stability,” Gillis-Harry said.
The concerns reflect longstanding industry tensions since the commissioning of Dangote Refinery in 2024. The $20 billion facility (Africa’s largest and one of the world’s biggest single-train refineries), was hailed as a solution to Nigeria’s decades-old dependence on imported fuel. Yet industry groups argue that its expansion into distribution contravenes the Petroleum Industry Act (PIA), which prohibits refiners from directly marketing products.
Industry officials warn that vertical integration could push smaller depot owners, modular refiners, independent marketers, and truck operators out of business. “This would trigger millions of job losses nationwide with devastating effects on livelihoods,” Gillis-Harry said, likening the risk to the cement sector, where market dominance by a few producers has been blamed for stifling competition and raising prices.
The filling station owners called on President Bola Ahmed Tinubu and top regulators, including the Nigerian National Petroleum Company (NNPC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and security agencies, to urgently intervene.
“Even from their vacations, they must act to avert hardship for citizens,” Gillis-Harry said, warning that a breakdown in fuel supply chains would hit transport and commerce within hours.
The association has directed station owners not to discipline or dismiss pump attendants who fail to report to work during the strike, noting that attendants are members of NUPENG and will likely join the walkout. PETROAN also said it would deploy a 120-man compliance team to monitor facilities and ensure safety during the shutdown.
The warning from PETROAN follows a parallel announcement by the Independent Petroleum Marketers Association of Nigeria (IPMAN), Western Zone, which declared plans to halt operations from Monday, September 8, 2025.
Oyewole Akanni, IPMAN’s Western Zone chairman, accused Dangote Refinery and MRS Energy of undermining competition by seeking to dominate petrol distribution. He argued that the move threatens the survival of IPMAN’s 4,000-strong truck fleet and the livelihoods of thousands of drivers.
“The entry of refiners into distribution violates the PIA and puts at risk years of investments by our members,” Akanni said.
At the heart of the recent row is Dangote Refinery’s dominant position in Nigeria’s fuel market. With a nameplate capacity of 650,000 barrels per day, the plant dwarfs the country’s four state-owned refineries, which remain largely moribund despite years of rehabilitation efforts.
While consumers initially welcomed Dangote’s entry, hoping for lower prices and an end to import reliance, industry players warn that control over both refining and distribution risks creating a near-monopoly. Some officials fear a repeat of patterns seen in other sectors where Dangote Group has secured dominant market share, particularly cement.
Critics argue that without regulatory checks, the refinery’s scale could distort pricing, squeeze out smaller players, and reduce long-term supply resilience. “Nigerians should not be swayed by ‘Father Christmas’ promises of cheap fuel,” Gillis-Harry cautioned.
In an emergency general meeting, PETROAN resolved to continue consultations with stakeholders through Sunday and Monday in hopes of averting a shutdown. But Gillis-Harry said members were fully prepared to suspend operations by Tuesday if talks fail.
IPMAN has likewise indicated openness to dialogue, but insists that any settlement must address the distribution monopoly issue. NUPENG, meanwhile, has framed its dispute around tanker drivers’ job security, further complicating mediation efforts.
