Oil marketers in Nigeria are seeking direct access to purchase petrol from the newly operational Dangote Petroleum Refinery, bypassing the Nigerian National Petroleum Company Limited (NNPC), which currently serves as the sole distributor of the refinery’s products.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have initiated steps to ensure they can directly procure Premium Motor Spirit (PMS) from the $20 billion facility, located in Lekki, Lagos.
Currently, the NNPC is the exclusive buyer of petrol from Dangote Refinery, controlling the distribution chain and making it difficult for other marketers to access the product directly. However, IPMAN officials are eager to establish a direct relationship with the refinery to create a more competitive market.
According to Terlumun James, the Secretary of IPMAN, the group has already begun discussions with Dangote Group to facilitate direct dealings. Though no official date has been set for a meeting, James emphasized that the goal is to avoid purchasing from competitors like NNPC.
James noted that buying directly from the refinery would provide more efficiency and ensure that fuel is more readily available to consumers, stating that IPMAN is focused on finding the best ways to supply its members and, by extension, the Nigerian public.
Ukadike Chinedu, the spokesperson for IPMAN, explained that the association wants a “willing-buyer, willing-seller” relationship with the refinery, noting that deregulation of the oil market means there should be no need for intermediaries. “What is the essence of cutting corners when we can just go and buy from him [Dangote]?” Chinedu remarked.
On the other hand, if the Dangote Refinery declines direct sales, IPMAN plans to continue sourcing PMS from the NNPC and other suppliers. Chinedu stressed that the association’s primary focus is ensuring that its numerous filling stations have sufficient fuel to meet public demand.
