By OpeOluwa Okudero 
In a move that could reshape Nigeria’s fuel market, Dangote Refinery has struck a deal to supply up to 60 million litres of petrol per week directly to oil marketers across the country. This agreement, forged with the Independent Petroleum Marketers Association of Nigeria (IPMAN), is expected to streamline the supply chain and drive down fuel prices for consumers.
For years, Nigerian marketers have been dependent on middlemen to source imported fuel, leading to higher costs and inefficiencies. But now, with the new deal, marketers will be able to purchase gasoline directly from Dangote Refinery, cutting off the intermediaries and ensuring more competitive prices at the pump.
“We’re talking millions of litres,” said Chinedu Ukadike, IPMAN’s National Publicity Secretary. “Before now, a lot of the petrol coming into Nigeria had to go through middlemen. But with this agreement, we can lift directly from Dangote. It’s a game-changer.”
The deal, still being finalised, is expected to go live before the end of November. Ukadike is optimistic that once fully in place, it will open more opportunities for local marketers to access a steady, reliable supply of fuel. He stressed that the scale of the deal—240 million litres a month would give them the flexibility to meet the country’s needs without the hurdles that often occur when relying on imports.
Driving Growth in Nigeria’s Fuel Sector
And the benefits aren’t just about securing supply. This move could also bring about a sharp reduction in petrol prices. In fact, just the announcement of the Dangote-IPMAN partnership has already had a noticeable impact on the market, with some fuel prices dropping by as much as N10–N15 per liter. This, according to Ukadike, is just the beginning.
“Competition is coming into play now,” he explained. “As marketers, we won’t have to rely on middlemen anymore. We’ll be buying directly from the producer, and that’s going to bring prices down. I’m confident that by the end of this year, consumers won’t be paying what they’re paying now.”
Even more promising, Ukadike believes this partnership with Dangote will be a long-term solution to some of the systemic issues in the Nigerian fuel sector. He pointed out that, thanks to the deregulation of the sector, local oil traders are already feeling the pressure to stay competitive, and that’s translating into lower prices for everyday Nigerians.
“Just look at the drop in prices after the announcement of our deal with Dangote,” Ukadike added. “We haven’t even started fully, and we’ve already seen a N10 reduction. Wait until we’re operating at full capacity. This is just the tip of the iceberg.”
With the country still grappling with fuel importation despite the presence of a functioning refinery, the move to source fuel locally promises to boost Nigeria’s energy security and bring down the costs that have long burdened consumers.
As negotiations continue, all eyes are on Dangote Refinery and IPMAN to see just how much of an impact this game-changing agreement will have on Nigeria’s petrol prices in the months ahead.
Susan Olalere
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