Amid the ongoing controversies, the National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Shettima, has appealed to the Depot and Petroleum Products Marketers Association of Nigeria and the Nigerian Union of Petroleum and Natural Gas Workers to resolve their concerns with the Dangote Petroleum Refinery through dialogue rather than public altercations.

Shettima, in an interview with our correspondent, cautioned the two groups against escalating disputes in the media or seeking government intervention, stressing that constructive engagement with Dangote was the best option for the stability of the downstream oil sector.

“My advice to DAPPMAN and NUPENG is they should go to the negotiation table, sit and discuss, because all this going through the media and going to the government cannot help them. They should sit and have a dialogue,” he said.

According to him, the oil and gas industry had entered a new phase with the coming onstream of Africa’s largest refinery; hence, stakeholders must embrace change and adapt to market realities.

“Changes have already come to the industry and to the country, and whenever there are changes, the only thing we can do as business people is to go and sit down at the negotiation table, not go on strike or something else. Let them go and do dialogue. We all know that dialogue is the best. Dangote is a Nigerian, and he will listen to them. Let them go and sit together and tell him all that they need,” he added.

Shettima further reminded the unions that the downstream petroleum sector had been deregulated, leaving no room for restrictions on business operations.

“The sector is already fully deregulated. So, you cannot tell an individual that he cannot do this or he cannot do that. He is the owner of his own money. If he says he can give the product free, nobody can prevent him,” the IPMAN president stressed.

Tensions have been building in recent weeks after DAPPMAN accused the Dangote Refinery of distorting the petroleum products market through alleged price undercutting, a claim dismissed by the refinery.

NUPENG, which represents oil workers, has also threatened to withdraw services if what it described as anti-labour practices are not addressed.

On September 8, NUPENG shut down all fuel depots and the Dangote refinery, accusing Dangote of banning the drivers employed for its 4,000 compressed natural gas-powered trucks from joining the union.

DAPPMAN, on the other hand, started a controversy with the Dangote refinery after it announced a drop in petrol prices from N865 per litre to N841 in the South-West and N851 in Abuja, Edo, Rivers, Kwara and Delta states.

The depot owners alleged that Dangote was trying to stifle importers whose cargoes were just arriving on Nigerian shores, alleging that the refinery sold petrol to international traders in Lome at prices lower than what it offered to local off-takers.

On Monday, billionaire businessman and friend to Dangote, Femi Otedola, told DAPPMAN to embrace change in the industry, charging them to either innovate or perish.

Otedola recalled that he founded DAPPMAN in 2002, with a clear mission to challenge the dominance of the major marketers and give independent depot owners a fair platform to thrive.

According to him, at the time, the association aimed to fill critical supply gaps left by an inefficient downstream system.

However, he emphasised that since then, times have changed, with many of the original players having exited the scene and those left allegedly clinging to assets that no longer reflect today’s business realities.

“But times have changed. Many of the original players have exited the scene, and those left are clinging to assets that no longer reflect today’s business realities. I advised some of them as far back as last year to sell their depots as scrap while they still had value. Nigeria now has over four million metric tonnes of storage capacity, most of it idle. With the Dangote refinery now supplying fuel locally, the old business model is crumbling.

“Zenon Oil pioneered the modern diesel business in Nigeria and grew to become the largest supplier in the country. We built depots to store our imported diesel because the market was import-driven and riddled with inefficiencies. But with Dangote’s refinery fully operational, those gaps no longer exist.

“We now have domestic production and local supply that is efficient, reliable, and proudly Nigerian. Furthermore, we must not fail to recognise the attendant benefits of eliminating the gridlock around the Ibafon, Tincan and Apapa areas due to the operations of the Dangote Refinery,” Otedola argued.

Meanwhile, Aliko Dangote has vowed that he would not allow his $20bn investment to fall to those he called oil mafias.

The Dangote refinery, located in the Lekki Free Zone, Lagos, began production in 2024 with a capacity to refine 650,000 barrels per day. It is seen as a game-changer for Nigeria’s petroleum sector, expected to end decades of dependence on imported refined products.

Industry watchers have warned that unresolved disputes between major stakeholders could disrupt the anticipated stability and lower fuel prices the refinery is projected to bring.