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Why DAPPMAN’s Outdated Business Model Crumble Against Dangote Refinery

The entry of the Dangote Refinery into Nigeria’s oil and gas sector has changed the game, leaving many players, especially the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), struggling to keep up. For years, DAPPMAN’s members thrived on importation and distribution of refined petroleum products. But with Dangote’s refinery now producing locally, that model is quickly becoming outdated.

Unlike the old system where middlemen controlled the flow of fuel through imports, the Dangote Refinery is positioned to supply directly at scale, cutting costs and reducing dependence on foreign products. This shift has exposed weaknesses in DAPPMAN’s model, which relies heavily on margins created by importation rather than efficiency or innovation.

Analysts say the problem lies in DAPPMAN’s failure to adapt. While global energy markets are moving towards efficiency, technology, and local refining capacity, many traditional marketers still depend on practices that are no longer sustainable. The Dangote Refinery, with its massive capacity and competitive pricing, has simply disrupted the old order.

If DAPPMAN is to survive in this new reality, it must rethink its approach — from investing in storage and distribution technology to exploring partnerships and new business lines. Without such innovation, the once-powerful group risks losing relevance in a sector where Dangote’s refinery is already setting the pace.

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