Nigerians may soon see a major breakthrough in the nation’s fuel supply as the Independent Petroleum Marketers Association of Nigeria (IPMAN) is close to finalizing a deal with Dangote Refinery for direct gasoline supply.
Abubakar Maigandi, the National President of IPMAN, confirmed on Wednesday that negotiations with the Dangote Refinery, Africa’s largest oil refinery, are progressing well. The discussions are centered on securing a direct fuel supply from the refinery’s massive 650,000 barrels-per-day facility.
Speaking at the inauguration of a special task force in Abuja, Maigandi expressed confidence that a deal would be reached soon, which could significantly impact fuel prices and availability across the country.
“We are happy to inform you that arrangements to receive gasoline directly from the Dangote Refinery are almost complete. We are already talking with Dangote and other partners to start direct product sourcing from the refinery now that we have received our money back from NNPCL,” Maigandi stated.
Progress in Talks with Dangote
Maigandi also revealed that the ongoing discussions with Dangote Refinery had been prompted by the intervention of the Director-General of the Department of State Services (DSS). The talks are being closely monitored by key government agencies, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which has been instructed to issue the necessary import and off-take licenses for IPMAN to begin direct fuel loading from the refinery.
This move follows the government’s decision to fully deregulate the petroleum industry, which has led to rising fuel prices and a scramble among marketers to secure stable, domestic fuel sources.
Oil marketers, including IPMAN, have long called for direct access to gasoline produced at Dangote Refinery, which is expected to reduce the country’s dependence on imported fuel and bring down costs.
However, concerns remain about whether the Dangote Refinery will be able to meet local demand for fuel. If necessary, IPMAN has suggested that the country may need to continue supplementing domestic fuel supplies with imports to avoid shortages.
Task Force to Combat Oil Sabotage
Alongside the news of the potential deal with Dangote Refinery, Maigandi also announced the formation of a special task force designed to address issues of oil theft, pipeline vandalism, and other forms of economic sabotage within the oil sector.
“Our association plays a pivotal role in the downstream oil sector, accounting for more than 80% of the distribution chain. Therefore, we must tackle the issue of economic sabotage head-on,” Maigandi said.
The task force, which will include members from across all 36 states, will be tasked with monitoring and combating illegal activities that affect the oil industry. These illegal activities, such as oil bunkering and pipeline vandalism, contribute to fuel shortages and high costs, further complicating Nigeria’s economic challenges.
Maigandi assured Nigerians that IPMAN is committed to working with the government to ensure that those responsible for sabotaging the nation’s resources are held accountable.
Marketers Push for Stability
As IPMAN nears a deal with Dangote, the hope is that the direct supply of gasoline from a domestic refinery will stabilize fuel prices in Nigeria. The country has long struggled with the rising costs of imported petroleum products, which has led to inflation and increased hardship for ordinary citizens.
Maigandi reiterated that the fuel marketers are optimistic about reaching an agreement with Dangote Refinery in the coming days. Sources confirmed that a recent meeting between oil marketers and Dangote officials did not yet produce a final deal. However, another meeting is scheduled in Lagos, where representatives from IPMAN and Dangote will continue their discussions.
