Oil marketers have stated that despite the recent directive from the Federal Government, the Nigerian National Petroleum Company Limited (NNPCL) remains the exclusive off-taker of Premium Motor Spirit (PMS) from the Dangote Petroleum Refinery.
According to the marketers, NNPCL will continue as the sole buyer of petrol from the $20 billion Lekki-based refinery until the current agreement between NNPCL and Dangote Refinery expires.
However, the specific end date of this agreement has not been disclosed, and neither NNPCL nor Dangote Refinery officials responded to inquiries regarding the matter.
This situation follows the Federal Government’s October 11, 2024, announcement through the Ministry of Finance, which stated that petroleum product marketers could now directly negotiate and purchase PMS from local refineries without the need to go through NNPCL as an intermediary.
The government emphasized that this move was intended to “encourage competition and efficiency” by allowing marketers to initiate direct commercial agreements with local refineries.
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“Marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC,” the statement from the government read.
Despite this directive, the Independent Petroleum Marketers Association of Nigeria (IPMAN) confirmed after a meeting with Dangote Refinery officials on October 15, 2024, that NNPCL remains the sole buyer of petrol for the time being.
In a notice addressed to members of IPMAN’s Western Zone, Dele Tajudeen, the Zonal Chairman for South-West, explained the outcome of their meeting:
“The IPMAN National Vice President, Zonal Chairman of the Western Zone, IPMAN members, and the PTD Zonal Chairman met with the Vice President of the Dangote Group, along with several other notable staff members of the refinery, on October 15, 2024.
We had a very useful and fruitful discussion on the direct purchase of products from the Dangote refinery. The Vice President of Dangote confirmed that the Minister of Finance and Coordinating Minister of the Economy, as well as the Minister of Petroleum Resources, have directed the commencement of product sales to marketers registered with the refinery. However, a pending agreement with NNPC Ltd still exists.”
Tajudeen further added, “Until this agreement is terminated by either party, direct sales to marketers will be on hold.”
IPMAN also advised its members that the National Executive Council would be meeting in Abuja on Wednesday to discuss the matter further.
“In view of this,” the notice stated, “marketers who have not officially registered as IPMAN members should do so promptly, as only registered marketers will benefit from the opportunity to lift products from the Dangote refinery once operations commence.”
Meanwhile, major oil marketers confirmed that they are still lifting products from the Dangote refinery under the existing agreement with NNPCL.
A major dealer, who spoke on the condition of anonymity due to a lack of authorization, said, “There is a subsisting deal between NNPC and the Dangote refinery, and we major marketers are lifting PMS from the refinery using a pro forma invoice (PFI).”
