The Centre for the Promotion of Private Enterprise (CPPE) has dismissed claims that the Dangote Refinery poses a monopolistic threat to Nigeria’s downstream petroleum sector. The economic advocacy group insists that the country should prioritize policies that support domestic refining investments instead of encouraging increased fuel importation.

In a policy statement signed by its CEO Dr Muda Yusuf, the CPPE argued that decades of fuel import dependence created deep structural distortions within the Nigerian economy. This dependence weakened the naira, intensified foreign exchange pressures, and contributed significantly to fiscal imbalances under the fuel subsidy regime.

The organization stressed that Nigeria must prioritize the protection and expansion of local refining capacity. Policies that could expose domestic investors to excessive import competition and regulatory uncertainty should be avoided.

According to the CPPE, attempts to portray the Dangote Refinery as a monopolistic threat are simplistic, fundamentally flawed, and grossly unfair. The refinery did not prevent other investors from entering the sector, nor did it cause the collapse of state-owned refineries. It simply undertook an extraordinary industrial investment at a scale unprecedented in Africa.

The CPPE highlighted that for decades, Nigeria’s dependence on imported petroleum products imposed enormous economic and fiscal costs. It exported jobs and industrial value abroad while exerting pressure on foreign reserves and weakening the naira.

The group further stated that the establishment of the Dangote Refinery, alongside growing investments in modular refineries, represents one of the most consequential industrial investments in Africa. These investments should be strategically supported, celebrated, and strengthened.

Instead, the CPPE observed, there appears to be mounting pressure for unrestricted importation of refined petroleum products. This policy orientation could undermine domestic refining investments and discourage future industrial commitments.

The CPPE noted that Nigeria’s former subsidy regime consumed trillions of naira annually. Petroleum imports also exceeded $10 billion yearly at peak periods, underscoring the economic burden of import dependence.