- Dangote Refinery pledged to supply IPMAN with 60 million liters of petrol weekly, totaling 240 million liters per month to boost domestic fuel distribution
- Under the agreement, IPMAN members would off-take fuel directly from the refinery
- The deal aims to streamline Nigeria's fuel supply, reduce inefficiencies, and increase transparency in the petroleum sector
The Dangote Refinery has pledged to supply the Independent Petroleum Marketers Association of Nigeria (IPMAN) with 60 million liters of Premium Motor Spirit (PMS) weekly, amounting to a total of 240 million liters per month.
This agreement has been viewed by experts as a major step towards reducing Nigeria’s reliance on imported petroleum products and improving domestic fuel distribution.
Chinedu Ukadike, Publicity Secretary of IPMAN, confirmed that members of the association would have access to any quantity of PMS allocated to them by the Dangote Refinery.
Speaking to reporters, Ukadike emphasized that independent marketers play a critical role in the country’s fuel distribution network, particularly in the delivery of imported fuel products.
"We are going to off-take the product in millions of liters. Before now, most of the imported products in Nigeria were distributed through IPMAN. So we can off-take the products, no matter the millions of liters that are produced," Ukadike said.
Under the terms of the agreement, IPMAN members will have the capacity to acquire and distribute petrol directly from the Dangote Refinery, which has now committed to providing over 60 million liters each week, depending on demand.
According to Ukadike, the agreement will ensure a more efficient and predictable fuel supply across the nation.
"We can take from 10 million liters and above, and Dangote has offered to give us over 60 million liters depending on our patronage," he added.
The IPMAN spokesperson also highlighted that discussions with Dangote Group are nearly complete, with only final documentation left to be processed. The refinery has assured that fuel supplies can begin as soon as the agreement is finalised.
"We are finalising discussions. You know the meeting between IPMAN and the Dangote refinery was held last week, and documentation is in process. So, there are still a few pieces of documentation that we are doing now. Once they are sorted, we will off-take PMS from the plant," Ukadike said, adding that the partnership is expected to commence before the end of this month.
Ukadike also pointed out that the new system would help to curtail the issue of unscrupulous dealers holding onto payments without delivering fuel products.
“IPMAN has gathered its members and we have developed a Special Purpose Vehicle to off-take the products from the refinery. So, the issue of individuals going to buy one or two trucks has gone. IPMAN is now going to be a major distributor, and our money will be guaranteed,” Ukadike noted.
Oil marketers secure tank farms for petrol imports amid supply challenges from Dangote refinery
Meanwhile, TheRadar earlier reported that the Independent Petroleum Marketers Association of Nigeria reportedly acquired tank farms in Calabar and Lagos for petrol importation.
Festus Osifo of the Trade Union Congress emphasised the need for alternative petrol sources amid production shortfalls.
