KEY POINTS
- IPMAN plans refinery ownership pending approvals.
- Members ordered to buy Dangote refinery fuel.
- Direct PMS supply begins January 2026.
Nigeria’s independent fuel marketers are laying the groundwork for a deeper role in the country’s refining landscape, as the Independent Petroleum Marketers Association of Nigeria signaled plans to pursue refinery ownership and ordered its members to prioritize fuel purchases from the Dangote Petroleum Refinery.
The strategy, which remains subject to regulatory approval, is part of broader efforts to expand domestic refining capacity and cut Nigeria’s long dependence on imported petroleum products. The association said the move aligns with ongoing reforms in the downstream oil sector and recent changes in regulatory leadership.
Speaking at a press briefing in Abuja on Thursday, IPMAN National President Abubakar Shettima said the group is positioning itself to support local refining while strengthening supply stability. His comments followed leadership changes at the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Petroleum Regulatory Commission.
Marketers push for local refining
Shettima said IPMAN expects the new regulators to anchor policy decisions around local refining and discourage fuel imports where domestic capacity exists. He argued that Nigeria should no longer import products that can be refined within its borders and called for a regulatory framework that allows independent marketers to invest directly in refinery assets.
According to him, the association’s position reflects years of advocacy for an end to large-scale fuel imports, which he said weaken the economy and expose the country to external shocks. Shettima added that enabling marketers to own refineries would strengthen value creation and attract long-term investment into the downstream sector.
He said the association supports President Bola Tinubu’s decision to readjust regulatory leadership and urged the new appointees to place national interest at the center of policy choices. Reducing imports, he said, would help conserve foreign exchange and support industrial growth.
Dangote supply reshapes fuel distribution
Shettima also announced a growing partnership between IPMAN and the Dangote Petroleum Refinery, Africa’s largest, aimed at boosting nationwide petrol supply. Under the arrangement, the refinery will begin direct supply of Premium Motor Spirit to registered IPMAN members from January 2026, including free delivery to filling stations across the country.
He said the development would further lower pump prices and eliminate supply gaps, noting that IPMAN controls more than 80 percent of Nigeria’s PMS retail market. The association has directed all members nationwide to prioritize patronage of the Dangote refinery, which it described as the most affordable source of petrol currently available.
Shettima warned that continued fuel importation alongside local refining distorts market dynamics, drains foreign exchange, destroys jobs and discourages investors. He said issuing import licenses while domestic capacity is available undermines confidence in the sector.
The IPMAN president also called on the new leadership of the NMDPRA to address outstanding bridging claims owed to marketers, estimated at more than N190 billion. He said resolving the backlog is critical to easing financial pressure on operators.
Nigeria has long relied on imported fuel following the collapse of its state-owned refineries, a dependence that has strained foreign reserves and heightened exposure to global oil price swings. The start-up of the 650,000-barrel-per-day Dangote refinery has reshaped the downstream market, intensifying debates over imports, pricing and regulatory oversight. Recent tensions between regulators and the refinery over licensing and market control helped trigger leadership changes across the sector.
