Despite the Federal Government’s recent directive that oil marketers could begin sourcing Premium Motor Spirit commonly known as petrol, directly from the Dangote Petroleum Refinery, the Nigerian National Petroleum Company Limited remains the sole off-taker of the product.
This situation stems from an ongoing agreement between NNPC and the $20 billion Lekki-based refinery, which has yet to expire, according to oil marketers.
The PUNCH reported that the marketers disclosed this development on Wednesday, emphasizing that NNPC would retain its exclusive role in lifting petrol from Dangote’s facility until the existing contract between the two parties is terminated.
Neither NNPC nor the Dangote refinery have provided details on when this agreement is expected to conclude.
Earlier, on October 11, 2024, the Federal Government issued a statement through the Ministry of Finance, encouraging oil marketers to negotiate the purchase of petrol directly from local refineries.
The statement declared, “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.”
However, following discussions with the management of the Dangote refinery on October 15, 2024, the Independent Petroleum Marketers Association of Nigeria confirmed that NNPC remains the sole off-taker of petrol, pending the termination of its deal with Dangote.
The revelation came during a meeting attended by IPMAN members, the association’s Zonal Chairman for the South-West, Dele Tajudeen, and the Vice President of the Dangote Group.
In a notice circulated to IPMAN members in the Western Zone, Tajudeen stated, “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.”
Tajudeen urged marketers who had not yet registered with IPMAN to do so promptly, as they would need official membership to benefit from direct purchasing when the refinery opens up its sales.
Meanwhile, IPMAN’s National Executive Council was scheduled to convene in Abuja on Wednesday to further deliberate on the situation.
Some major oil marketers confirmed they are currently lifting PMS from the Dangote refinery through the existing agreement with NNPC.
“There is a subsisting deal between NNPC and Dangote refinery and it is based on that deal that we major marketers are lifting PMS from the refinery using PFI (proforma invoice),” an industry insider, who wished to remain anonymous, stated.
Despite inquiries, officials from both NNPC and Dangote have remained silent on when the current agreement might end, leaving the future of direct sales from the refinery to other marketers uncertain.
