The Nigerian National Petroleum Company Limited remains the exclusive off-taker of Premium Motor Spirit from the Dangote Petroleum Refinery, despite the Federal Government’s recent directive allowing other oil marketers to begin loading petrol from the facility.
This situation continues to raise questions about market competition and supply dynamics in Nigeria’s oil sector.
Oil marketers indicated that the NNPC will continue as the sole off-taker of Premium Motor Spirit from the Dangote refinery until their existing agreement ends. The timeline for this agreement’s termination remains unclear, as neither NNPC nor Dangote refinery officials have provided details, according to The Punch.
On October 11, 2024, the Federal Government announced that oil marketers are now permitted to negotiate purchases of petrol directly from the Dangote refinery, bypassing NNPC.
“Moving forward, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC. Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency,” it stated in the statement.
After a meeting with Dangote refinery officials on October 15, 2024, members of the Independent Petroleum Marketers Association of Nigeria confirmed that NNPC remains the sole off-taker of petrol from the refinery until their agreement concludes.
In a notice to IPMAN members in the Western Zone, Zonal Chairman Dele Tajudeen stated “The IPMAN National Vice President, Zonal Chairman of Western Zone, IPMAN members, and PTD Zonal Chairman met with the Vice President of Dangote Group and many other notable staff members of the Dangote refinery yesterday, 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/ Coordinating Minister of the Economy, and the Minister of Petroleum Resources have directed them to commence sales of products to marketers who have duly registered with the refinery, but they are still having a pending agreement with NNPC Ltd which still subsist.
“Until and when the agreement is terminated by either party, the direct sales will still be on hold.”
The notice stated that the IPMAN National Executive Council would hold a meeting in Abuja on Wednesday “in that respect.”
It added, “In view of this, marketers who are yet to officially register as IPMAN members should do so without wasting time as such marketers will not benefit from this opportunity when we eventually commence lifting from the Dangote refinery.”
Neither the Dangote refinery nor the NNPC provided a response when contacted about the current situation regarding the off-take agreement.
