Following a meeting between the management of the Dangote Petroleum Refinery and executives of the Independent Petroleum Marketers Association of Nigeria, the refinery is set to provide fuel to approximately 150,000 retail outlets operated by IPMAN.
Upon contacting IPMAN’s President, Abubakar Maigandi, on Friday evening to confirm the meeting, he stated that the association had indeed met with the refinery’s management. Maigandi added that the refinery agreed to supply products to IPMAN’s over 30,000 members. Additionally, it was revealed that the downstream oil sector regulator is currently examining the refined products from the refinery before granting approval for fuel dispensing in the market.
Earlier, seven major oil marketers in Nigeria had registered with the refinery for the lifting and distribution of refined petroleum products. The Major Oil Marketers Association of Nigeria confirmed that with the registration, they would start distributing fuel produced by the $20 billion plant once commercial terms were finalized. The seven major marketers include 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc, and NNPC Retail.
Similarly, the Petroleum Products Retail Outlets Owners Association of Nigeria announced that PETROAN was in talks with the Dangote refinery for product supply. On January 12, 2024, the refinery announced the commencement of production of Automotive Gas Oil (diesel) and JetA1 (aviation fuel).
Discussing the outcome of the meeting between IPMAN and the Dangote refinery, Maigandi mentioned that the refinery’s management would be supplying products to IPMAN’s 150,000 stations nationwide. He stated, “The meeting went well, so right now we are just expecting their reply in terms of products that they are going to give us. They have agreed to dispense products to IPMAN members.”
Regarding the number of oil marketers within IPMAN, Maigandi mentioned, “We have 30,000 members as of our last census, which was done two years ago. And they agreed to supply products to us. Also, our retail outlets are 150,000 stations across the country.” When asked if every member and station of IPMAN would receive supply from Dangote, he clarified, “What he (Dangote) is producing is for Nigeria’s consumption. He can supply Nigeria and can export some of the products. It is not a small refinery. It is a very big refinery.”
Upon learning that Dangote had pledged to bring the products to the market in January, the IPMAN President expressed optimism, stating that there is hope since production has commenced. He affirmed his firsthand knowledge of the situation, having visited the refinery himself. According to him, once approval for selling is obtained, Dangote can start selling immediately.
Highlighting the significance of the project for Nigeria, the IPMAN President mentioned that the refinery is not a small project and emphasized its positive impact. The initial focus is on aviation fuel and diesel, with independent petroleum marketers also purchasing diesel. He reassured that the association’s 30,000 members are prepared to buy and distribute the products across 150,000 retail outlets nationwide, ensuring ample fuel availability.
Addressing concerns about fuel scarcity, Maigandi stated, “So anywhere you go you will see fuel. The issue of scarcity of fuel will be no more once he (Dangote) starts.”
When asked about discussions on pricing during the meeting with the refinery’s management, he clarified that pricing details were not discussed. However, he conveyed confidence that the prices would be slightly lower than the prevailing rates, offering a positive outlook for consumers.
Situated in Lagos, the Dangote Refinery has already taken delivery of six million barrels of crude oil at its two Single Point Moorings (SPMs) positioned 25km from the shore. The initial crude delivery occurred on December 12, 2023, and the sixth cargo was received on January 8, 2024.
The refinery boasts the capability to load 2,900 trucks daily through its truck-loading gantries. It has been specified by the company that the products emanating from the refinery will adhere to Euro V specifications.
“The refinery design complies with the World Bank, US EPA, European emission norms, and Department of Petroleum Resources emission/effluent norms, employing state-of-the-art technology,” as highlighted in a statement by the company.
The Dangote Petroleum Refinery and Petrochemical Project, a subsidiary of Dangote Industries Limited, is a significant facility with a daily crude oil refining capacity of 650,000 barrels. It is strategically located in the Dangote Industries Free Zone, Ibeju-Lekki, Lagos, Nigeria.
Functioning as an industrial plant, the Dangote Petroleum Refinery transforms crude oil into a variety of essential petroleum products, including diesel, gasoline, jet fuel, and kerosene. Covering an expansive area of approximately 2,635 hectares in the Lekki Free Trade Zone in Lagos, the refinery stands as a key player in the region’s oil and gas sector.
In the regulatory aspect, officials from the Federal Ministry of Petroleum Resources have been actively engaging with the Dangote Petroleum Refinery. Their visits are part of the necessary processes to secure regulatory approvals before the release of diesel and aviation fuel into the market. This thorough examination ensures compliance with industry standards and safety protocols.
Addressing the timeline for product release, Aliko Dangote, the President of Dangote Group, affirmed on Friday that the products would be made available in the market once regulatory approvals are obtained.
“We have commenced the production of diesel and aviation fuel, and the products will be in the market within this month once we receive regulatory approvals. This is a big day for Nigeria. We are delighted to have reached this significant milestone. This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects. This is a game-changer for our country, and I am very fulfilled with the actualization of this project,” stated Aliko Dangote.
In response to inquiries about the issuance of regulatory approvals for product release, an official from the petroleum ministry, who preferred to remain anonymous, indicated that as of now, there is no license issued. However, the official emphasized that the process is underway, with officials from the NMDPRA (Nigeria Midstream and Downstream Regulatory Authority) actively visiting the plant.
The official explained, “There is no license yet. But it is in the process because the license is not just issued like that. There are things that should be done, and these things must be completed, and they (regulatory officials) are there right now as we speak.”
While acknowledging that the issuance of a license involves a thorough process, the source highlighted the ongoing nature of the regulatory inspections. The source also noted that the company has stated the products will be in the market before the end of the month, implying that regulatory approvals are expected to be granted before the scheduled release.
The Dangote refinery, inaugurated by former President Muhammadu Buhari in May 2023, faced challenges meeting its crude oil refining targets due to a lack of crude supply. However, it began receiving crude oil batches in December 2023, with the sixth batch arriving this month. Officials at the plant had previously explained that six million barrels of crude were needed to commence production.
Despite attempts to contact Dangote refinery officials for comments on the meeting with IPMAN executives, there was no response to calls or text messages as of Friday.
