By Ayomide Otitoju
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has reached an agreement with Dangote Petroleum Refinery to supply products directly to its depots and retail outlets, a move aimed at reducing fuel costs for Nigerians. IPMAN’s National President, Abubakar Garima, made the announcement during a press briefing in Abuja on Monday, following a National Working Committee meeting.
Under this new arrangement, Dangote Refinery will provide IPMAN with Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Dual Purpose Kerosene (DPK) for nationwide distribution. Garima expressed optimism that this collaboration would ensure steady availability of petroleum products across Nigeria, citing both affordability and supply stability.
“This agreement with Dangote Refinery will allow us to distribute PMS, AGO, and DPK at a more affordable rate to Nigerians,” said Garima. “After discussions with Alhaji Aliko Dangote and his team, we are pleased to report this direct access to supply. We expect a positive impact on supply and pricing, aligning with the government’s goals for economic stability.”
In October, Dangote Industries Limited’s founder, Aliko Dangote, revealed that despite holding over 500 million liters of petrol, there had been limited purchasing activity from oil marketers. IPMAN responded, claiming that its members had encountered difficulties sourcing petrol, even after paying N40 billion to the Nigerian National Petroleum Company Limited (NNPCL). Dangote Refinery clarified that it had not received any payments from IPMAN for refined products, leading to discussions and the recent agreement.
Garima urged IPMAN members to support the Dangote Refinery, emphasizing its potential benefits to Nigeria’s economy, particularly in terms of foreign exchange stabilization. “IPMAN members should rely on the Dangote Refinery and Nigerian refineries for their supplies,” he said. “This partnership is in alignment with President Bola Tinubu’s Renewed Hope Agenda and will stimulate job creation and economic growth.”
Energy expert Kelvin Emmanuel highlighted the financial advantages of the agreement, noting that it would reduce costs incurred through NNPCL’s financing processes. “This deal cuts out middleman costs, lowering financing expenses by removing the need for NNPC’s letter of credit charges,” Emmanuel explained.
As part of a broader strategy, IPMAN also announced plans to transition its retail outlets to support Compressed Natural Gas (CNG) as an alternative fuel source. Garima expressed IPMAN’s commitment to supporting the government’s CNG initiative, envisioning an extensive network of CNG refill stations across Nigeria. “We are encouraging our members to prepare for CNG adoption, as this will enhance Nigeria’s energy independence and create a more sustainable economy,” he said.
The partnership is anticipated to improve efficiency, reduce petroleum prices, and strengthen the petroleum supply chain. IPMAN’s Board of Trustees Chairman, Aminu Abdukadir, noted that the deregulation of Nigeria’s petroleum sector calls for IPMAN’s active involvement in both infrastructure and supply management.
Meanwhile, Major Energy Marketers Association of Nigeria (MOMAN) Executive Secretary, Clement Isong, addressed the complexities of pricing, attributing variations in landing costs to factors such as exchange rates and logistics. He noted that although the landing cost recently decreased to N971.57 per liter, final pricing varies based on distribution scale and logistics.
“The pricing is determined by various factors, including the scale of purchase and distribution logistics,” Isong explained. “There isn’t a single price for fuel nationwide—it’s a free and open market where costs fluctuate based on each marketer’s scale, location, and exchange rate access.”
This collaboration with Dangote Refinery is expected to bring much-needed price stability and accessibility to petroleum products across Nigeria, paving the way for future energy sector reforms and innovations.
