The Crude Oil Refineries Association of Nigeria (CORAN) has blamed government inaction for fuelling the perception that Dangote Petroleum Refinery holds a monopoly in the downstream oil sector.
Speaking to reporters, CORAN’s Publicity Secretary, Eche Idoko, said the real challenge lies in the government’s failure to ensure crude oil supply to modular refineries.
He argued that rather than Dangote’s dominance, it is state inaction that threatens competition in the sector.
“For decades, Nigeria relied on inefficient state refineries and costly fuel imports. Now, private refineries are reshaping the nation’s energy landscape — promising economic growth, employment, and energy security,” Idoko said. “Concerns about Dangote becoming a monopoly miss the point. It is the government’s inaction that risks creating one.”
Idoko stressed that local refining could drastically cut fuel imports, saving billions annually while creating over 100,000 jobs across operations, logistics, and downstream industries such as petrochemicals, plastics, and fertiliser.
He debunked monopoly fears, noting that several operational and developing refineries exist across Nigeria.
These include the 11,000 barrels-per-day (bpd) Aradel Refinery in Rivers, the 5,000bpd Waltersmith Refinery in Imo, the 10,000bpd OPAC Refinery in Delta, the 20,000bpd Clairgold Refinery (under development), and the 12,000bpd Azikel Refinery nearing completion in Bayelsa.
“This diversity supports regional fuel distribution, flexible production capacity, and fair pricing,” he said. “Size alone does not create a monopoly — lack of access to crude oil does.”
While Dangote can secure feedstock through private arrangements, Idoko said smaller refiners struggle to access crude due to the absence of a clear supply mechanism. He urged the government to enforce the Domestic Crude Supply Obligation (DCSO) to ensure equitable access to crude for all refiners.
Idoko also highlighted the absence of financial support for key infrastructure such as catalytic reformers and desulfurisation units, which are critical for petrol and clean fuel production.
He called for the establishment of a Midstream Refinery Development Fund (MRDF) to address this gap.
Rejecting the inevitability of monopoly, he pointed out that refineries like Waltersmith, OPAC, and Aradel are already marketing products, demonstrating that big and small players can coexist, as seen in global markets.
To promote competition, Idoko recommended the following; Enforce the DCSO policy to guarantee crude supply, Launch the MRDF to support essential refining equipment, Expand the Nigerian Content Development and Monitoring Board’s financing model for modular refineries, Pass pro-competition legislation to ensure fair pricing and shared infrastructure, Dangote is just one player in a growing field that includes Aradel, Waltersmith, Clairgold, and others,” he said. “The threat of monopoly only arises if the government withholds crude and fails to support smaller refiners.”
He concluded, “We’ve seen how intervention helped the gas and agriculture sectors. The same must be done for refining. Without urgent action, the government itself will be responsible for creating the monopoly it fears. The choice is clear — support competition or enable monopoly through neglect.”
A recent report by the Nigerian Upstream Petroleum Regulatory Commission revealed that 82 per cent of crude oil produced in Q1 2025 was exported, leaving only 18 per cent for domestic refining.
