Business Economy

Rivers IPMAN Welcome Dangote Refinery’s Planned Distribution of Free Products to Marketers

By: Felix Ikpotor

The Independent Petroleum Marketers Association of Nigeria (IPMAN), Rivers State Chapter, has commended the plan by the management of Dangote Petroleum Refinery to commence the free distribution of petrol and diesel to marketers, dealers, and large-scale consumers nationwide, scheduled to begin on August 15, 2025.

IPMAN Rivers said the bold and strategic move is highly impactful in addressing some of the longstanding challenges facing stakeholders in Nigeria’s downstream petroleum sector—particularly independent marketers which includes inconsistent supply, high transportation costs, infrastructural bottlenecks, and fluctuating market prices, all of which the marketers say have adversely affected their ability to serve end users efficiently and sustainably.

Rivers IPMAN in a statement signed by its chairman, Tekena Ikpaki noted that as the majority stakeholder in Nigeria’s refining and fuel distribution value chain, Dangote Refinery is uniquely positioned to play a transformative role in enhancing the country’s energy security and logistics efficiency.

“The decision to deploy 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers is a particularly forward-thinking investment, which aligns with global sustainability goals while addressing domestic logistics constraints,” he said.

IPMAN said the development is timely, especially as the Nigeria continues to grapple with economic recovery efforts and energy supply challenges.

It said by offering an alternative and reliable supply route alongside the Nigerian National Petroleum Company Limited (NNPCL), the Dangote Refinery is providing marketers with critical access to competitive product sources, thereby reducing overdependence on any single supplier and promoting healthy competition.

“At IPMAN Rivers, we believe that such a multi-source supply model is essential to building a robust, competitive, and fair petroleum distribution ecosystem. More supply options mean greater flexibility for marketers, better pricing mechanisms, and, ultimately, more stability for Nigerian consumers at the pump.

“Furthermore, we see this initiative as a testament to what is possible when public-private partnerships and industrial leadership come together with a shared vision of national development. While the offer of free product distribution may appear generous, we encourage all stakeholders—including government regulators—to ensure that such programs are implemented transparently and inclusively, so that independent marketers across all regions benefit equitably,” the statement read.

IPMAN Rivers said they are in support of investments that improve the efficiency of fuel supply chains, including logistics, storage infrastructure, and pricing systems but however, “urge continued regulatory oversight to maintain a level playing field in the market—ensuring that no single player, regardless of size, operates at the expense of the broader market’s integrity”.

It acknowledged that the nitiative by Dangote Petroleum Refinery will complement the Crude-for-Naira initiative being implemented by the Nigerian National Petroleum Company Limited (NNPCL), aimed at stabilizing the naira and ensuring consistent fuel supply, stressing that the efforts by the twin organisations represent a shared commitment to national growth, energy security, and market stability.

While appreciating both Dangote Petroleum Refinery and NNPCL for their resilience, innovation, and continued support for stakeholders across the petroleum value chain, IPMAN Rivers reaffirmed their commitment to working collaboratively with Dangote Refinery, NNPCL, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and other stakeholders in the industry to ensure that the benefits of the new initiative are maximized for all.

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