Category: News

By Prince Iroka The Depot and Petroleum Products Marketers Association of Nigeria(DAPPMAN) has accused the Dangote Petroleum Refinery of distributing substandard Petroleum products into the Nigerian market. The claim was contained in a statement by the Executive Secretary of DAPPMAN, Mr. Olufemi Adewole, titled “Clarifying the Role of Market Players in Nigeria’s Downstream Petroleum Sector” released on Saturday. The association said it rejects any insinuation that DAPPMAN members deal in “substandard” petroleum products, saying all imports are subject to independent, regulator-accredited laboratory testing in accordance with NMDPRA protocols and global quality standards. Ironically, it said the same refinery alleging superiority had on multiple occasions sought waivers to distribute products with sulphur levels above approved thresholds, a fact that calls into question its consistency and credibility on product quality. “Nigeria’s downstream petroleum market is highly regulated, transparent, and aligned with international best practices. Attempts to cast doubt on the integrity of other compliant players are unfair and inaccurate,”. The further pointed out that, claims that repeated fuel price reductions by the Dangote Refinery are patriotic gestures ignore their timing and market impact. “These reductions were often strategically timed when other importers had active cargoes at sea or in tank, creating price shocks that undermined competition and imposed financial strain on fellow market participants, including the refinery’s own domestic customers. Even more concerning is the refinery’s pattern of offering lower prices to international buyers while quoting higher rates to local off takers. This contradicts public-facing claims of prioritizing Nigerians and places unnecessary burden on domestic businesses already operating under tight margins,’’. DAPPMAN maintained that, the assertion that Nigeria’s downstream stability rests solely on one refinery is misleading and dismissive of the broader ecosystem. “While we welcome the Dangote Refinery as a major infrastructure project, its contribution has peaked at only 30 to 35 percent of national demand. The balance continues to be supplied by responsible petroleum product marketers, including DAPPMAN members, who import and distribute under strict regulatory oversight by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA),’’. DAPPMAN insisted that, the claim that the refinery offers “free delivery” is also misleading, stating that, in reality, marketers are required to lift at least 25 per cent of their allocations directly from the refinery gantry and must do so using only Dangote-owned trucks, paying commercial rates based on their destination. The arrangement, it said, imposes additional logistical and financial burdens on marketers, limits operational flexibility, and undermines the narrative of cost relief being provided to the local market.

By Prince Iroka Nigeria’s upstream oil sector is witnessing a dramatic turnaround, with crude oil losses from theft and metering issues dropping to their lowest levels in nearly 16 years. In July 2025, daily losses stood at 9,600 barrels per day (bpd), the lowest figure since 2009 when losses dropped to all-time low of 8,500 bpd. This is based on trends of crude oil losses year-to-date July 2025, released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). This progress marks a major leap forward in the Commission’s relentless drive to eliminate all forms of crude losses across Nigeria’s oilfields and pipelines. Between January and July 2025, crude oil losses were contained at 2.04 million barrels, averaging 9,600 barrels per day over the seven-month period. This marks a clear departure from the high-loss years that have long plagued the industry. By comparison, the entire 2024 calendar year recorded 4.1 million barrels lost at a daily average of 11,300 barrels. Remarkably, in just the first seven months of 2025, losses were cut by 50.2%, with only 2.04 million barrels lost over the period. The figures for the period ending July 2025 also represent a dramatic 94.57% drop in crude oil losses compared to the full year of 2021, when Nigeria lost a staggering 37.6 million barrels at a daily average of 102,900 barrels. So far in 2025, only 2.04 million barrels have been lost, which is a reduction of 35.56 million barrels compared to the 37.6 million barrels lost in 2021, underscoring the scale of progress made in just four years. Crude oil losses in 2021 were the highest recorded in nearly 23 years, making it the peak year between 2002 and July 2025. Since the implementation of the Petroleum Industry Act in 2021, Nigeria has recorded steady progress in reducing crude oil losses. In 2021, losses stood at 37.6 million barrels, averaging 102,900 barrels per day. By 2022, this dropped to 20.9 million barrels at a daily average of 57,200 barrels. The downward trend continued in 2023, with losses reduced to 4.3 million barrels at 11,900 barrels per day. Even more progress was made in 2024, as losses were further contained to 4.1 million barrels, averaging 11,300 barrels per day. The Commission has adopted a balanced mix of kinetic and non-kinetic strategies in tackling oil losses. On the kinetic front, the Commission has continued to collaborate closely with security agencies, operators and communities. On the non-kinetic front, NUPRC has implemented strategic regulatory measures to close systemic loopholes. One key initiative is the metering audit across upstream facilities to ensure accurate measurement of production and exports. To further strengthen control, the NUPRC under the leadership of Engineer Gbenga Komolafe approved 37 new crude oil evacuation routes to combat oil theft.