Oil marketers in Nigeria are pushing to establish a direct business relationship with the Dangote Petroleum Refinery, bypassing the Nigerian National Petroleum Company Limited (NNPC). The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PPROAON) aim to procure petrol directly from the Dangote plant, a move that could potentially streamline operations for these retailers.
Currently, the NNPC is the exclusive distributor for Premium Motor Spirit (PMS) from the refinery located in Lekki. Other marketers must navigate through the national oil company to obtain the product. However, efforts are being made by IPMAN and PPROAON to engage directly with Dangote Group’s president, Alhaji Aliko Dangote, or other key management personnel to secure a direct purchasing agreement.
Although no specific date has been set for their discussions, IPMAN officials have stressed the importance of this direct procurement approach. Terlumun James, the group’s secretary, mentioned that the association prefers to keep business negotiations private until a conclusive deal is reached. However, he reassured that once finalized, the information would be shared with the public.
Acknowledging the high number of filling stations under IPMAN’s control, James highlighted that direct dealings with Dangote Refinery would benefit consumers by ensuring a more consistent supply of petrol. He emphasized that the NNPC is now seen as a competitor rather than a collaborator, reinforcing the need for IPMAN to explore multiple procurement avenues.
IPMAN’s spokesperson, Ukadike Chinedu, echoed similar sentiments, stressing the importance of engaging directly with Dangote to potentially secure PMS at competitive rates. He pointed out that the deregulated market environment supports a willing-buyer, willing-seller model, thus justifying the association’s efforts to establish direct procurement channels.
The president of PPROAON, Billy Gillis-Harry, explained that direct purchases from the Dangote refinery would foster healthy competition in the downstream sector. The aim is to ensure transparency and efficiency in transactions, benefiting both the marketers and end consumers.
Meanwhile, members of the Major Energies Marketers Association of Nigeria (MEMAN) have already begun lifting PMS from the Dangote refinery, with over 50 million litres distributed in the past week. MEMAN chairman, Huub Stokman, confirmed these activities but remained silent on whether the purchases are directly from Dangote or through the NNPC.
Tayo Adeloju, CEO of the Nigerian Economic Summit Group (NESG), emphasized the need for competition in the downstream sector while urging the government to support the Dangote refinery. He pointed out that monopolistic tendencies should be avoided and that more operators should enter the market to ensure fair pricing and availability of PMS(Petrol).
Lastly, Alhaji Aliko Dangote plans to reinvest earnings from his $20 billion refinery into other local ventures, signaling ongoing commitment to Nigeria’s economic growth. This reinvestment could further bolster the country’s industrial and commercial landscape, creating new opportunities for various stakeholders.
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