Dangote Refinery Monopoly Debate: CORAN Blames Govt Inaction

The Dangote Refinery monopoly debate heats up as CORAN argues government inaction, not Dangote, is threatening competition by starving modular refineries of crude oil and funding.

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🛢️ Dangote Refinery Monopoly Debate Sparks Industry Concerns

The Crude Oil Refineries Association of Nigeria (CORAN) has weighed in on the rising Dangote Refinery monopoly debate, clarifying that the real threat to fair competition in Nigeria’s downstream petroleum sector stems from government inaction, not the size of the Dangote Refinery.

Speaking to The PUNCH, CORAN’s Publicity Secretary, Eche Idoko, stated that multiple modular and privately-owned refineries are currently active in Nigeria. However, they are unable to compete effectively due to lack of crude oil supply and funding, not due to the operational scale of Dangote’s facility.

• Dangote Refinery Has Enough Petrol to Meet Nigeria’s Needs, Says Aliko Dangote

“The revolution in refining promises jobs, growth, and energy security. But monopoly fears are misplaced. The real danger is that the government is not providing crude oil to smaller players,” said Idoko.

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⚙️ Modular Refineries: Ready but Underserved

Idoko highlighted several operational and developing modular refineries across Nigeria:

Refinery Name	Capacity (bpd)	Location	Status
Aradel Refinery	11,000	Rivers State	Operational
Waltersmith	5,000	Imo State	Operational
OPAC Refinery	10,000	Delta State	Operational
Clairgold	20,000	Delta State	Under Development
Azikel Refinery	12,000	Bayelsa	Nearing Completion

Despite this diversity, none of these refiners has guaranteed access to crude oil due to lack of enforcement of the Domestic Crude Supply Obligation (DCSO).

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🧯 The Real Monopoly Risk: Government Neglect

The Dangote Refinery monopoly debate has gained attention following Dangote’s market dominance, but CORAN insists:

• Dangote secures crude oil through private deals.
• Modular refiners can’t access feedstock, making competition unequal.
• Without policy enforcement, even existing operational refineries will fail to scale.

“Dangote is just one player among many. The monopoly risk becomes real only when government withholds crude oil from smaller refineries,” said Idoko.

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🏗️ CORAN’s Call for Action: Break the Bottlenecks

To ensure true market competition, CORAN recommends the following:

✅ Key Policy Recommendations:

1. Enforce the Domestic Crude Supply Obligation (DCSO) – Guarantee crude oil to all licensed refiners.
2. Launch a Midstream Refinery Development Fund (MRDEF) – Provide capital for key equipment like catalytic reformers and desulfurisation units.
3. Adopt a Nigerian Content-style financing model – Similar to the NCDMB’s support for local oil and gas players.
4. Pass pro-competition laws – Ensure infrastructure sharing, fair pricing, and transparency in supply.

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💬 CORAN’s Final Warning: Act Now or Create a Monopoly

“History shows intervention works. It worked in gas, it worked in agriculture. Why not in refining?” Idoko questioned. He concluded by stressing that government inaction could create the monopoly it claims to oppose, and urged immediate implementation of supportive policies to ensure refining sector competition, energy security, and domestic economic growth.

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🧾 Understanding the Dangote Refinery Monopoly Debate

1. Is Dangote Refinery a monopoly? Not yet. Multiple other refineries exist, but government policy failure could enable Dangote to become a de facto monopoly. 2. Why can’t modular refineries compete? They lack guaranteed crude oil supply and funding for critical equipment. 3. What’s the Domestic Crude Supply Obligation (DCSO)? A government policy intended to ensure all refiners, big or small, get fair access to domestic crude oil. 4. What’s the MRDEF? A proposed Midstream Refinery Development Fund to finance infrastructure for small and modular refineries. 5. Are modular refineries producing now? Yes. Refineries like Waltersmith, Aradel, and OPAC are already producing and selling fuel. 6. What happens if no action is taken? CORAN warns that Nigeria risks creating a monopoly in refining, discouraging investment and threatening long-term energy security. #DangoteRefinery, #MonopolyDebate, #CORANNigeria, #ModularRefineries, #NigerianEnergyPolicy, #DCSO, #RefineryReform, #CrudeOilAccess, #EnergySecurityNigeria,

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🔗 Related Resources

📘 Nigerian Midstream and Downstream Petroleum Regulatory Authority 📘 Crude Oil Refineries Association of Nigeria (CORAN)