The Crude Oil Refineries Association of Nigeria has said that the failure of the government to supply crude oil to modular refineries is the reason many see the Dangote Petroleum Refinery as a monopoly in the downstream sector.

According to CORAN’s Publicity Secretary, Eche Idoko, government inaction, not Dangote, is the real monopoly threat in the sector. Idoko told The PUNCH that after decades of relying on “broken state refineries” and expensive fuel imports, private refineries are now transforming the country’s energy landscape.

“This revolution promises economic growth, jobs, and energy security. But fears that the Dangote Refinery will become a monopoly miss the real problem. Government inaction is the true threat to competition,” he said.

Idoko maintained that with local refineries, the country would reduce fuel imports and save the billions spent importing fuel yearly. He said this would generate over 100,000 jobs in operations and logistics, and boost industries like petrochemicals, plastics, and fertiliser plants while assuring energy security.

He noted that far from claims that the Dangote refinery would become a monopoly, Nigeria already has multiple operational refineries to prove that competition exists.

He listed some of the refineries, including the 11,000 barrels-per-day 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 in Delta; and the 12,000bpd Azikel Refinery nearing completion in Bayelsa.

This diversity, he said, promotes regional fuel supply, flexible production, and fair pricing. Idoko stated that the Dangote refinery’s size does not guarantee a monopoly, but some government failures do. According to him, there is no system to guarantee crude oil for all refiners.

While saying Dangote can secure oil through private deals, he argued that smaller players struggle to get feedstock, calling on the government to enforce the Domestic Crude Supply Obligation for fair access.

The CORAN spokesperson also stated that there is no dedicated fund for critical refinery equipment, such as catalytic reformers essential for producing petrol and desulfurization units needed for clean fuels, urging that a Midstream Refinery Development Fund be created by the government.

Stating that monopoly is not inevitable, he noted that Waltersmith, OPAC, and Aradel are already selling products, adding that “global markets show that big and small players coexist.” In his recommendation, he said, the government must act immediately by guaranteeing crude access via the DCSO policy.

He urged the government to launch the MRDEF to fund PMS-producing units (reformers/desulfurisers); expand the Nigerian Content Development and Monitoring Board’s style of financing for modular refineries; and pass pro-competition laws for fair pricing and infrastructure sharing.

“Dangote is one player among many – including Aradel, Waltersmith, Clairgold, and other CORAN members. The monopoly threat arises only if the government withholds crude oil from smaller refiners and denies them funding for critical equipment.

“History shows that intervention works in the gas and agriculture sectors. The government should replicate this for refining, and Nigeria should gain true energy freedom. If this fails, the government’s inaction will create the very monopoly it fears.

“The choice is clear. The government needs to act now for competition, or enable monopoly through neglect,” he concluded.

A report by the Nigerian Upstream Petroleum Regulatory Commission showed that 82 per cent of the crude oil produced in the first quarter of 2025 was exported, while only 18 per cent was left for local refineries.