The Crude Oil Refineries Association of Nigeria says the perception of the Dangote Petroleum Refinery as a monopoly stems from the federal government’s failure to supply crude oil to modular refineries.

CORAN’s Publicity Secretary, Eche Idoko, said that it is not Dangote but the government’s inaction that poses the real monopoly threat in the downstream sector, according to The Punch.

He noted that, after years of depending on non-functional state refineries and expensive fuel imports, private refineries are now driving a major shift in Nigeria’s energy sector.

“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 emphasized that investing in local refineries would significantly cut down fuel imports and save the country billions of naira spent annually on petroleum products.

He added that this shift could create over 100,000 jobs across operations and logistics, while also stimulating growth in industries such as petrochemicals, plastics, and fertiliser production—ultimately strengthening Nigeria’s energy security.

Idoko dismissed claims that the Dangote refinery poses a monopoly threat, arguing that Nigeria already has several operational and upcoming refineries that demonstrate existing competition in the sector.

He cited examples such as the 11,000 barrels-per-day (bpd) Aradel Refinery in Rivers State, the 5,000bpd Waltersmith Refinery in Imo, the 10,000bpd OPAC Refinery in Delta, the 20,000bpd Clairgold Refinery currently under development in Delta, and the 12,000bpd Azikel Refinery nearing completion in Bayelsa.

Idoko said this diversity in refinery ownership promotes regional fuel distribution, flexible production capacity, and competitive pricing. He stressed that the sheer size of the Dangote refinery does not automatically create a monopoly—rather, it is the government’s failure to ensure crude oil supply to all refiners that threatens fair competition. According to him, there is currently no structured system in place to guarantee crude allocation to both large and modular refineries.

Idoko acknowledged that the Dangote refinery can source crude through private agreements but noted that smaller refineries face serious difficulties securing feedstock.

He called on the government to implement the Domestic Crude Supply Obligation to guarantee fair and equal access to crude oil for all licensed refiners.

The CORAN spokesperson also highlighted the lack of a dedicated funding mechanism for acquiring critical refinery equipment, such as catalytic reformers needed for petrol production and desulfurization units for cleaner fuels. He urged the government to establish a Midstream Refinery Development Fund to support such investments.

Dismissing fears of a monopoly, he noted that refineries like Waltersmith, OPAC, and Aradel are already supplying products to the market, proving that large and small operators can coexist—just as seen globally. He reiterated that the government must urgently implement the DCSO to ensure consistent crude access for all refiners.

He called on the government to establish the Midstream Refinery Development Fund to finance key petrol-producing units such as catalytic reformers and desulfurizers.

Additionally, he urged an expansion of the Nigerian Content Development and Monitoring Board’s financing model to support modular refineries and advocated for the passage of pro-competition legislation to ensure fair pricing and shared access to vital infrastructure.

“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.