The Independent Petroleum Marketers Association of Nigeria (IPMAN) has reached a significant agreement with Dangote Refinery to directly procure petroleum products, marking a key step toward ensuring a stable and affordable supply of fuel across the country.
IPMAN’s National President, Abubakar Garima, made the announcement in Abuja following a National Working Committee meeting. He expressed confidence that the partnership with Dangote Refinery would facilitate a consistent distribution of Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Dual Purpose Kerosene (DPK) to IPMAN’s depots and retail outlets nationwide.
“We are pleased to announce that Dangote Refinery will directly supply IPMAN with these products for distribution,” Garima stated, following discussions with refinery owner Aliko Dangote and his management team in Lagos. He emphasized that the collaboration would help stabilize product availability and pricing, benefiting consumers and strengthening Nigeria’s foreign exchange market.
Garima also encouraged IPMAN members to fully support the initiative, which he described as a step towards greater efficiency through backward integration. He expressed optimism that ongoing negotiations would lead to lower costs for petroleum products, benefitting both marketers and end consumers.
The IPMAN President also addressed the Association’s efforts to transition to Compressed Natural Gas (CNG) as an alternative fuel, confirming that talks were underway with the presidential CNG initiative. This move is seen as another potential boost to Nigeria’s energy sector, promoting sustainability and reducing dependence on traditional fuel sources.
Dangote Refinery, in its commitment to the new agreement, will supply petroleum products to over 30,000 IPMAN members and more than 150,000 retail outlets nationwide. This direct supply arrangement is expected to eliminate intermediaries, reduce operational costs, and ensure a more reliable product distribution network.
Addressing Past Challenges
Despite the positive outlook, the agreement comes after IPMAN expressed frustration over past difficulties in sourcing fuel from Dangote Refinery. The Association had previously claimed that its members faced challenges in loading petrol from the refinery, despite having made a substantial ₦40 billion payment to the Nigerian National Petroleum Company Limited (NNPCL).
In response, Dangote Refinery clarified that it had not received any payments from IPMAN. The company explained that the payment referenced by IPMAN had been made to NNPCL, not directly to the refinery. Furthermore, Dangote Refinery stated that it had no direct business relationship with IPMAN and was not involved in the loading of refined products for IPMAN members.
Dangote Refinery emphasized that NNPCL had not yet authorized the release of PMS to IPMAN, and advised the Association to establish a direct registration and payment process with the refinery to avoid further misunderstandings.
Despite these earlier issues, the partnership between IPMAN and Dangote Refinery is expected to foster greater collaboration and transparency within Nigeria’s petroleum sector, paving the way for a more efficient, affordable, and sustainable fuel distribution system across the nation.
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