Oil marketers in Nigeria are advocating for direct purchases of petrol from the Dangote Petroleum Refinery, moving away from the Nigerian National Petroleum Company Limited (NNPC) as the sole supplier.
This initiative, driven by the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria, aims to streamline access to Premium Motor Spirit (PMS) from the $20 billion facility located in Lekki.
Currently, NNPC is the exclusive off-taker for PMS from the Dangote refinery, requiring other marketers to purchase through the national oil company. This push for direct sourcing comes as the Nigerian Economic Summit Group (NESG) urges the federal government to foster competition in the downstream oil sector while supporting the growth of the Dangote refinery.
IPMAN officials have characterized NNPC as a competitor, indicating that efforts are underway to engage with Alhaji Aliko Dangote and his management team. While a specific meeting date has yet to be confirmed, IPMAN leaders believe that purchasing directly from the refinery is the right approach.
Terlumun James, Secretary of IPMAN, emphasized the association’s focus on business rather than publicity. “We are serious businessmen, and we are in the process of finalizing our discussions with Dangote,” he stated. He acknowledged the importance of IPMAN’s role, given its extensive network of filling stations across Nigeria.
James also noted the association’s challenges in recent years, which have impacted their operations. “We are coming out of a crisis and looking to move forward,” he added.
Regarding NNPC, James remarked, “As far as IPMAN is concerned, NNPC is a competitor. We are focused on ensuring our members have access to petrol for the benefit of the public.”
IPMAN spokesman Ukadike Chinedu reiterated the necessity of meeting with Dangote, highlighting the association’s commitment to a willing-buyer, willing-seller relationship in a deregulated market. He stated, “If Dangote is willing to sell to us, we should be able to negotiate directly with him.”
Chinedu acknowledged that while IPMAN seeks to establish direct purchases from Dangote, they will continue to source PMS from other suppliers, including NNPC, if necessary.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, stated that enabling marketers to lift products directly from the Dangote refinery would enhance competition within the sector. “We are engaged in ongoing discussions with Dangote officials to facilitate this process,” he noted.
Meanwhile, members of the Major Energies Marketers Association of Nigeria (MEMAN) remain the only group currently lifting PMS from the Dangote refinery, with reports indicating that over 50 million liters have been transported in the past week.
During a recent webinar, MEMAN Chairman Huub Stokman confirmed the loading of products from the refinery but did not clarify the specifics of the transactions.
Dr. Tayo Adeloju, CEO of the NESG, emphasized the need for competition in the downstream oil sector while urging the government to support Dangote’s operations. He noted that creating a competitive environment is essential to avoid monopolistic practices.
In a related development, Alhaji Aliko Dangote has announced plans to reinvest profits from the refinery into other local businesses, signaling a commitment to furthering economic growth in Nigeria.
