The Dangote Petroleum Refinery has finalized a major agreement with the Independent Petroleum Marketers Association of Nigeria (IPMAN) to supply 60 million litres of petrol weekly. This arrangement, expected to begin before the end of November 2024, will significantly enhance IPMAN’s distribution capacity, providing up to 240 million litres monthly. Under the deal, IPMAN members will source petrol directly from the refinery, bypassing middlemen to streamline operations and reduce logistical challenges.
This partnership represents a critical step in Nigeria’s efforts to reduce its dependency on fuel imports, which have historically drained the nation’s finances. With Dangote’s refinery ramping up production, the collaboration ensures an efficient distribution network for one of the country’s largest fuel-consuming associations. IPMAN has set up a special-purpose vehicle to manage product offtake, guaranteeing secure transactions and efficient supply chains.
The agreement comes as Nigeria’s fuel market undergoes significant changes following deregulation. Competition among marketers has led to declining petrol prices, benefiting consumers. With Dangote’s direct supply to IPMAN, the deal is poised to stabilize fuel supply, eliminate bottlenecks, and support Nigeria’s journey toward a more self-reliant energy sector.
