Nigerian Marketers Register With Dangote Refinery Ahead of Fuel Supply
With the eagerly awaited commencement of premium motor spirit (PMS) production from the Dangote Petrochemical Refinery this month, Nigerian petroleum marketers have started registering with the company to secure direct fuel supplies. This move comes as the Independent Petroleum Marketers Association of Nigeria (IPMAN) continues negotiations for bulk purchases to support members who might not afford large volumes individually.
Last month, Aliko Dangote, President of the Dangote Group, announced the refinery’s readiness to begin PMS sales in June, aiming to end Nigeria’s reliance on imported petrol. Speaking at the Africa CEO Forum Annual Summit in Kigali, Rwanda, Dangote confidently asserted that by June, Nigeria would cease importing petrol entirely, boasting sufficient gasoline production to cater to West and Central Africa, as well as aviation fuel for the entire continent and exports to Brazil and Mexico.
“Right now, Nigeria has no cause to import anything apart from gasoline and by sometime in June, within the next four or five weeks, Nigeria shouldn’t import anything like gasoline; not one drop of a litre,” Dangote declared. “We have enough gasoline to give to at least the entire West Africa, diesel to give to West Africa and Central Africa. We have enough aviation fuel to give to the entire continent and also export some to Brazil and Mexico.”
This announcement has been well-received by independent marketers, who have long depended on third-party supplies at inflated costs. National Vice President of IPMAN, Hammed Fashola, expressed enthusiasm about the refinery’s capacity to meet Nigeria’s petrol needs. “The Dangote refinery can satisfy our needs as far as petroleum products are concerned, especially petrol,” he said.
Marketers are now eager to begin lifting fuel from the refinery, with Fashola stressing that this development will end fuel scarcity in Nigeria by eliminating the need for imports. However, Fashola noted that while individual marketers are registering with the refinery, IPMAN as an organization has yet to secure a formal agreement for PMS supply and is advocating for a collective negotiation approach to secure price discounts.
IPMAN, controlling over 80% of Nigeria’s filling stations, positions itself as a crucial partner for the Dangote refinery. Fashola highlighted the association’s efforts to secure favourable terms through bulk purchases, saying, “We have our letter with them, we are expecting their response, and we will surely do a follow-up. We are just like a ready-made market for Dangote. It is an advantage for him to have us in his programme. I believe that he would like to have us.”
He emphasised the importance of negotiating power in securing discounts and discouraged individual companies from acting independently. Despite the lack of a formal meeting with Dangote, individual marketers are already initiating registrations, reflecting their eagerness and the high stakes involved.
As of Sunday, discussions with the Dangote refinery are ongoing, with the association maintaining its strategy of securing collective agreements to benefit its members.
