LAGOS, Nigeria—The Dangote Petroleum Refinery in Lagos has suspended direct sales of petroleum products from its on-site gantry, citing an “operational adjustment” aimed at improving efficiency. The decision, which took effect on Thursday, September 18, 2025, comes amid a brewing dispute with a major marketers’ union over distribution costs.
In a correspondence to its marketing partners, the company stated that all “self-collection gantry sales” were on hold until further notice. It urged marketers to transition to its “Free Delivery Scheme,” which provides direct shipments to retail outlets. The company added that any payments for direct collection made after the effective date would be rejected.
The move is seen as an attempt by the refinery to promote its own delivery network and prevent sales to unregistered marketers. However, the decision follows a period of tension with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).
DAPPMAN has accused Dangote of forcing marketers to use its delivery fleet and absorb logistics costs. The marketers’ group argues that transporting products from the Lagos facility to other parts of Nigeria requires significant additional expense. The refinery, in turn, has maintained that its delivery scheme is a way to stabilize supply and reduce costs, and has accused marketers of seeking a subsidy.
The standoff has raised concerns about competition and pricing in the country’s downstream oil sector. The suspension of direct sales is expected to particularly affect independent marketers who have not registered for the refinery’s delivery plan.
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