CPPE Defends Dangote Refinery, Rejects Monopoly Claims and Calls for Stronger Local Refining Support
The Centre for the Promotion of Private Enterprise (CPPE) has rejected allegations that the Dangote Refinery poses a monopolistic threat to Nigeria’s downstream petroleum industry, describing such claims as misleading and unfair. The economic advocacy group urged policymakers to focus on strengthening local refining capacity rather than promoting increased fuel importation, arguing that domestic investments remain vital to the country’s long-term economic stability.
In a statement issued on Sunday and signed by its Chief Executive Officer, Dr. Muda Yusuf, the CPPE noted that Nigeria’s decades-long dependence on imported petroleum products created significant economic distortions. According to the group, heavy fuel imports drained foreign exchange reserves, weakened the naira, encouraged rent-seeking activities, and imposed huge fiscal burdens through fuel subsidy payments that consumed trillions of naira over the years.
Defending the Dangote Refinery, the organisation maintained that the project should be viewed as a landmark industrial achievement rather than a monopoly. The CPPE argued that the refinery did not prevent other investors from entering the sector or contribute to the collapse of state-owned refineries. Instead, it described the facility as one of the most significant private-sector investments in Africa, capable of transforming Nigeria’s energy landscape and boosting industrial growth.
The group also warned that unrestricted importation of refined petroleum products could undermine local refining businesses and discourage future investors. It stressed that genuine competition should emerge through the establishment of additional domestic refineries rather than continued reliance on imported fuel. According to the CPPE, many countries protect strategic industries through supportive policies that help local businesses compete, create jobs, and strengthen economic resilience.
Nigeria’s refining sector has witnessed a major shift following the commencement of operations at the Dangote Refinery and the growth of modular refinery projects across the country. In February, the refinery announced that it had reached its full processing capacity of 650,000 barrels of crude oil per day, making it the first refinery globally to achieve full nameplate capacity in a single train of that scale. The company also exported 456,000 tonnes of refined petroleum products through 12 cargo shipments in March 2026, reinforcing expectations that Nigeria could emerge as a major refining and export hub for West Africa.
source: nairametrics