The Dangote Petroleum Refinery has secured a landmark agreement with the Independent Petroleum Marketers Association of Nigeria (IPMAN) to supply 60 million litres of Premium Motor Spirit (PMS), commonly known as petrol, every week. This deal, set to roll out soon, will provide IPMAN with up to 240 million litres of petrol monthly, significantly boosting its distribution capacity.
Chinedu Ukadike, IPMAN’s National Publicity Secretary, explained that the new arrangement allows the association’s members to source petrol directly from Dangote’s refinery without intermediaries. This step is part of Dangote’s strategy to streamline fuel distribution and enhance local availability.
“We are going to off-take the product in millions of litres,” said Ukadike. “Before now, most imported products in Nigeria were distributed through IPMAN. Dangote has now offered to supply over 60 million litres, depending on our needs.”
The deal marks a new phase in the relationship between Dangote Refinery and Nigeria’s independent marketers, who play a central role in the nation’s fuel distribution network. As the largest refining operation in Nigeria, Dangote’s refinery aims to reduce the country’s dependency on imported fuel, which has long strained the nation’s finances.
The weekly supply of 60 million litres will be scaled according to demand. Ukadike confirmed, “Once we start lifting the product from the refinery, we will distribute it across the country.”
While the exact start date is still being finalized, Ukadike expressed confidence that distribution would begin before the end of November, with both parties working to finalize documentation.
This direct supply deal is a major milestone for IPMAN, as it simplifies fuel distribution and eliminates previous logistical challenges. The association has also created a Special Purpose Vehicle (SPV) to manage product off-taking and ensure guaranteed funds for transactions, replacing the earlier system where individual marketers purchased smaller petrol quantities.
With increased competition in Nigeria’s fuel sector following deregulation, and declining petrol prices driven by new imports from both the Nigerian National Petroleum Company (NNPC) and other marketers, the Dangote-IPMAN deal is expected to stabilize supply and reduce costs for consumers.
