By Aisha Muhammad Magaji
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has called for the sale of petroleum products at fair and reasonable prices, warning that excessive costs could destabilize the downstream sector and hurt consumers already burdened by inflation.
Speaking at a stakeholders’ engagement in Lagos, the association’s Chairman, Mrs. Winifred Akpani, stressed that while market liberalization remains vital to ensuring supply availability, pricing must reflect the realities of Nigerian households and businesses.
“We are fully committed to sustaining the supply chain and ensuring products reach end-users,” Akpani said. “However, we must strike a balance where marketers can operate viably without pushing costs beyond the reach of ordinary Nigerians. Affordability is as important as availability.”
Call for Policy Support
DAPPMAN emphasized that while the federal government has taken significant steps to deregulate the petroleum sector, more targeted interventions are required to stabilize prices. Among the proposals were a transparent pricing template, greater investment in domestic refining, and fiscal incentives for marketers to cushion the impact of global oil price volatility.
Industry stakeholders at the meeting noted that the removal of fuel subsidies in mid-2023 had initially caused price shocks but also created opportunities for investment in storage facilities, transportation, and retail outlets. Still, they warned that without safeguards, Nigerians could continue to face fluctuating pump prices tied to international crude dynamics.
Akpani underscored the need for improved synergy between government agencies, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and private operators to ensure efficiency across the supply chain.
Domestic Refining and Dangote Factor
A key concern raised was Nigeria’s continued dependence on imported petroleum products, despite the commissioning of the Dangote Petroleum Refinery and ongoing rehabilitation of state-owned refineries in Port Harcourt, Kaduna, and Warri.
DAPPMAN leaders stressed that making locally refined products available at competitive rates would be critical to achieving price stability. “We cannot overemphasize the importance of domestic refining,” Akpani said. “Once our refineries produce consistently, Nigerians should not be at the mercy of foreign exchange swings or international market shocks.”
Analysts have suggested that the entry of Dangote Refinery into the market could create more favorable competition and gradually reduce product landing costs. However, marketers are urging regulators to ensure fair access to supplies and prevent monopolistic pricing structures.
Consumer Burden and Inflationary Pressures
With Nigeria’s inflation rate at 28.9 percent in August 2025, according to the National Bureau of Statistics (NBS), high energy costs remain a major driver of rising living expenses. Transportation fares, food prices, and utility costs have soared in tandem with petrol and diesel prices.
DAPPMAN argued that stabilizing petroleum product prices is essential for broader economic growth, as businesses and households rely heavily on fuel for mobility, power generation, and production.
“We recognize the global realities, but Nigeria must localize solutions,” said one DAPPMAN board member. “Consumers cannot continue to carry the heaviest burden while operators struggle with high costs and regulatory bottlenecks.”
Looking Ahead
Industry watchers say the ongoing dialogue between marketers, regulators, and government could shape the next phase of Nigeria’s downstream market. Proposals on the table include establishing a strategic fuel reserve, creating a regulated buffer margin to absorb shocks, and incentivizing investments in storage and distribution infrastructure.
For now, consumers and businesses await concrete measures that will translate into stability at the pumps. As one Lagos commuter noted: “We don’t mind deregulation, but the government and marketers must ensure prices don’t spiral out of control. Fair pricing is what Nigerians need.”
