Oil marketers in Nigeria are seeking direct access to petrol from the Dangote Petroleum Refinery, aiming to bypass the Nigerian National Petroleum Company Limited (NNPC) as the sole distributor of Premium Motor Spirit (PMS). Under the leadership of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the marketers have initiated talks to purchase PMS directly from the $20 billion Dangote plant.
Currently, NNPC acts as the exclusive off-taker of petrol from the Lekki-based refinery, controlling distribution to other marketers. However, IPMAN and PETROAN are pushing for a new model that allows them to deal directly with Dangote’s refinery, citing NNPC as a competitor.
Speaking on the matter, IPMAN officials revealed that plans to meet with Dangote Group’s President, Alhaji Aliko Dangote, or senior management were underway. The goal is to secure a direct supply line from the refinery, which they argue would benefit both marketers and consumers by cutting out intermediaries and promoting market competition.
“NNPC is a competitor in this business. We believe it is right for us to buy directly from Dangote instead of going through another marketer,” said IPMAN Secretary Terlumun James. He added that while no date had been set for the meeting, discussions were progressing.
IPMAN spokesman, Ukadike Chinedu, emphasized that a “willing buyer, willing seller” relationship was essential in a deregulated market, noting that direct dealings with Dangote would reduce unnecessary layers of complexity.
The President of PETROAN, Billy Gillis-Harry, echoed similar sentiments, stressing that direct lifting from the Dangote refinery would introduce healthy competition in the downstream sector. “Accessing the product directly from them will deepen competition and bring transparency,” he stated.
Meanwhile, the Nigerian Economic Summit Group (NESG) has advised the Federal Government to prevent monopolistic practices in the downstream sector, while supporting the Dangote refinery’s growth. NESG CEO, Dr. Tayo Adeloju, suggested that competition should be encouraged by allowing more operators to enter the market.
In recent developments, members of the Major Oil Marketers Association of Nigeria (MOMAN) have already begun lifting petrol directly from the Dangote refinery, with over 50 million litres sold in the past week. However, NNPC’s role in the pricing of the product remains a point of contention, with the refinery emphasizing that its rates are cheaper than imported fuel.
As Dangote’s refinery ramps up production, analysts predict that Nigeria’s reliance on fuel imports could significantly reduce, with the plant expected to reach full capacity in the coming months.
