The Independent Petroleum Marketers Association of Nigeria (IPMAN) has finalized an agreement with the Dangote Petroleum Refinery to enable direct lifting of petroleum products. Announced by IPMAN’s National President, Abubakar Garima, at a press briefing in Abuja, this move aims to make petroleum products like Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Dual Purpose Kerosene (DPK) more accessible and affordable nationwide.
Garima highlighted that the agreement followed consultations with Aliko Dangote and senior executives, aiming to bypass middlemen, stabilize supply, and reduce costs. This is expected to support President Bola Tinubu’s Renewed Hope Agenda by boosting the local supply chain and reducing dependency on imported fuel. Garima also urged IPMAN members to support Dangote Refinery, emphasizing its potential impact on job creation, economic growth, and foreign exchange stabilization.
IPMAN is also preparing to embrace the federal government’s Compressed Natural Gas (CNG) initiative, aligning with the presidential directive for CNG refill stations across the country. Garima called for a partnership with the government to streamline this transition, which could provide an alternative, sustainable fuel option for Nigerians.
Impact on Market Pricing
Energy expert Kelvin Emmanuel welcomed the agreement, noting it could reduce financing and margin costs, such as the $28 per metric ton financing cost previously incurred through the NNPC's Letter of Credit. He pointed out that direct lifting eliminates extra costs, making fuel more affordable for IPMAN’s 30,000 retail outlets.
Additionally, the Executive Secretary of the Major Energy Marketers Association of Nigeria, Clement Isong, explained that while the landing price of petroleum varies due to exchange rates and logistical factors, this new agreement should help stabilize prices. He indicated that pricing would be influenced by average stock costs, economies of scale, and exchange rate fluctuations, with central bank rates expected to provide more predictability.
IPMAN’s Role and Commitment
Aminu Abdukadir, Chairman of IPMAN’s Board of Trustees, stressed the association’s responsibility to deliver fuel efficiently by securing retail stations, trucks, and finances. This commitment is essential, he noted, for IPMAN’s sustainability in a deregulated sector.
As Nigeria’s petroleum industry navigates a shift toward localized supply, IPMAN’s partnership with Dangote Refinery represents a step toward reducing market volatility, supporting local infrastructure, and aligning with national economic goals.
