Exclusive Deal! NNPC Blocks Oil Marketers from Accessing Dangote Refinery’s Petrol Sales

Exclusive Deal! NNPC Blocks Oil Marketers from Accessing Dangote Refinery’s Petrol SalesThe Nigerian National Petroleum Company Limited (NNPCL) remains the sole off-taker of Premium Motor Spirit (PMS) from the Dangote Petroleum Refinery, despite recent government directives allowing other oil marketers to begin loading petrol from the facility.

On Wednesday, marketers confirmed that NNPCL will continue to hold exclusive rights to purchase petrol from the $20 billion Lekki-based refinery until the existing agreement between NNPCL and Dangote concludes. However, the timeline for the agreement’s expiration remains unclear, with no specific details provided by officials from NNPCL or Dangote Refinery.

This comes after the Federal Government, in an October 11, 2024, announcement, stated that oil marketers could now purchase petrol directly from local refineries, bypassing NNPCL. The announcement was made to encourage competition and improve market efficiency by allowing marketers to negotiate purchases on commercial terms.

Despite this, after a meeting with Dangote refinery officials on October 15, 2024, members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) revealed that NNPCL’s exclusive off-taker status remains in place until the existing agreement ends.

A notice from IPMAN’s Zonal Chairman, South-West, Dele Tajudeen, confirmed the refinery’s stance: “The Minister of Finance and the Minister of Petroleum Resources have directed Dangote to begin selling products to registered marketers. However, the agreement with NNPCL still holds, and direct sales to marketers will remain on hold until it is terminated.”

IPMAN’s National Executive Council is scheduled to meet in Abuja to discuss the matter further. Marketers who have not registered as IPMAN members were urged to do so to benefit from future opportunities to lift products from the Dangote refinery.