The Independent Petroleum Marketers Association of Nigeria (IPMAN) has successfully forged an agreement with Dangote Refinery to lift petroleum products directly, marking a milestone for Nigeria’s fuel distribution network. This collaboration aims to ensure a steady and affordable supply of Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Dual Purpose Kerosene (DPK) across the country.
Announcing the agreement in Abuja on Monday after a National Working Committee meeting, IPMAN National President Abubakar Garima expressed confidence in the partnership’s potential to reduce fuel costs and bolster Nigeria’s economic stability. The deal comes after Garima’s discussions with Aliko Dangote and the refinery’s management in Lagos.
“We’re pleased to announce that Dangote Refinery has agreed to supply IPMAN with PMS, AGO, and DPK directly for distribution to our depots and retail outlets,” Garima said, emphasizing that this direct channel will eliminate middlemen, reduce costs, and ensure a more consistent fuel supply across Nigeria.
Garima urged IPMAN members to back Dangote Refinery, stressing the partnership’s broader benefits, including increased backward integration and reduced pressure on Nigeria’s foreign exchange market.
In terms of pricing, Garima indicated optimism that ongoing negotiations would secure lower rates, making PMS more affordable for Nigerians. Additionally, he highlighted IPMAN’s readiness to support the federal government’s push toward Compressed Natural Gas (CNG) as a viable fuel alternative, noting that IPMAN is working with the presidential CNG initiative to establish refill stations nationwide.
Meanwhile, Dangote Refinery, committed to ensuring a steady product supply, pledged to commence deliveries to over 30,000 IPMAN members and 150,000 retail outlets nationwide. The refinery anticipates this collaboration will streamline distribution and promote accessibility, especially for underserved areas.
However, the agreement follows recent tension between IPMAN and Dangote Refinery regarding product lifting difficulties. IPMAN had previously expressed frustration over its inability to load PMS from the refinery, despite an alleged ₦40 billion payment to the Nigerian National Petroleum Company Limited (NNPCL). Dangote Refinery refuted the claim, clarifying that it had not received payments directly from IPMAN and advising the association to formalize its dealings by registering and making payments directly to the refinery.
Moving forward, the IPMAN-Dangote agreement promises to enhance efficiency, lower costs, and increase fuel availability, providing a significant boost to Nigeria’s petroleum sector. Industry observers expect this partnership to support both economic growth and Nigeria’s long-term energy goals.
