Oil marketers in Nigeria have voiced differing opinions regarding a new policy by Dangote Refinery requiring advance payments for product offtake. Traditionally, marketers paid upon product arrival at depots, but the refinery’s stance, revealed during a stakeholder meeting in Abuja, aims to mitigate payment risks as it establishes operations. Some marketers express concerns about increased financial pressure, particularly for smaller operators, while others see the measure as essential for ensuring smooth operations. Stakeholders are in ongoing discussions to address the implications of this shift.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, acknowledged the policy as a logical step for a new business. He highlighted efforts to build relationships with the refinery, which could eventually lead to credit facilities. To support smaller marketers, a special-purpose vehicle has been established to streamline financing and facilitate access to products under the new arrangement. However, some marketers remain cautious, emphasizing the need for fair negotiations before fully adopting the policy.
The broader petroleum industry is also adapting, with the Petroleum Products Retail Outlet Owners Association of Nigeria affirming its commitment to halting fuel imports. The association is working to secure financing to meet the advance payment requirement, seeking government support to ease financial burdens. Despite the challenges, stakeholders remain optimistic that ongoing discussions will yield a sustainable framework beneficial to all parties.
