The Independent Petroleum Marketers Association of Nigeria has secured an agreement with Dangote Petroleum Refinery to lift products directly.
This, according to the association, will ensure the availability of petroleum to Nigerians at a cheaper rate.
IPMAN’s National President, Abubakar Garima, announced this at a press briefing on Monday in Abuja, following a meeting of the National Working Committee of the association.
He explained that the Dangote refinery had obliged IPMAN to lift PMS, AGO and DPK directly for onward supply to IPMAN depots and retail outlets. This new arrangement with the Dangote refinery would ensure a steady and ceaseless supply of PMS products all over Nigeria at an affordable rate.
On October 29, the founder of Dangote Industries Limited, Aliko Dangote, said the refinery held over 500 million litres of petrol, but added that oil marketers were not buying his product.
In a counter-response, IPMAN said its members had been unable to load petrol from the Dangote refinery for days. Garima said the association paid N40bn to the Nigerian National Petroleum Company Limited, but still cannot source the product – but the refinery said it has not received any payment from the IPMAN for refined petroleum products.
Speaking further at the briefing, Garima urged IPMAN members to support Dangote Refinery, citing backward integration benefits and positive impacts on Nigeria’s Foreign Exchange market.
Regarding pricing, Garima expressed confidence that negotiations with Dangote would yield lower rates.
The IPMAN president also stated that the association is preparing for a smooth transition to nationwide CNG refill stations, as it is currently in negotiations with the presidential CNG initiative.
The partnership between Dangote and IPMAN is expected to increase efficiency, affordability, and economic growth for Nigeria’s petroleum industry. This move is expected to eliminate middlemen, reduce costs, and ensure steady supply.
Early this year, the Dangote Refinery said it would supply fuel to about 150,000 retail outlets operated by oil marketers.
In his remarks, the chairman, Board of Trustees of the association, Aminu Abdukadir, said that IPMAN must remain committed to providing the retail stations and funds to ensure that products are delivered to consumers.