The Nigerian National Petroleum Company Limited (NNPC) continues to be the sole off-taker of Premium Motor Spirit (PMS), commonly known as petrol, from the Dangote Petroleum Refinery, despite the recent Federal Government directive allowing other oil marketers to purchase petrol directly from the refinery.
Oil marketers disclosed on Wednesday that NNPC would maintain its role as the exclusive off-taker until the current agreement between the state-owned oil company and the Dangote Refinery regarding the lifting of PMS is concluded. However, neither the marketers nor officials from NNPC and Dangote provided clarity on when the agreement is expected to end.
On October 11, 2024, the Federal Government, through a statement by the Ministry of Finance, announced that oil marketers were now permitted to negotiate directly with local refineries, including Dangote Refinery, to buy petrol. The aim was to promote competition and improve market efficiency by removing NNPC’s intermediary role.
“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,” the government said.
However, during a meeting with the Dangote Refinery on Tuesday, the Independent Petroleum Marketers Association of Nigeria (IPMAN) revealed that NNPC is still the exclusive off-taker until the agreement between the two organisations ends.
In a notice to its members, Dele Tajudeen, the Zonal Chairman of IPMAN’s South-West zone, confirmed the ongoing NNPC-Dangote arrangement. He stated, “The Vice President of Dangote confirmed that the Minister of Finance 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 subsists.”
Tajudeen urged IPMAN members to ensure they are properly registered with the association to benefit from the eventual commencement of direct sales from the refinery. He also noted that a meeting of the IPMAN National Executive Council was scheduled to take place in Abuja to discuss the situation.
Despite the Federal Government’s directive, major oil marketers confirmed that they are still obtaining petrol from Dangote Refinery through the existing agreement between NNPC and the refinery, with transactions processed via proforma invoices (PFI).
