Dangote Refinery Secures Marketers, Depot Operators for Distribution of Petrol, Diesel, Others
- The Dangote Refinery has formed a strategic partnership with marketers for the distribution of its petroleum products
- The associations approved to lift and distribute products from the refinery include IPMAN, DAPPMAN and MOMAN
- It is believed that the refining of petroleum products at the refinery would significantly accelerate Nigeria's economy
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
The registration process for distributors involved in the lifting and distribution of refined petroleum products nationwide has been initiated by Dangote Petroleum Refinery.
It would be recalled that about a week ago, the refinery announced to the public that it had commenced production in the hopes that products would soon be available in the market.
Source: UGC
Currently, registration has been completed for members of three prominent associations, collectively representing 75% of the total market share in Nigeria.
The associations include the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), and the Major Oil Marketers Association of Nigeria (MOMAN).
Negotiations between marketers and Dangote Refinery started in 2023
The Dangote Refinery said it is exploring additional opportunities with marketers who have expressed interest in participating in the lifting and distribution of its petroleum products within the country.
It would be recalled that about a week ago, petroleum product marketers were anxiously expecting the refinery's product price list.
Earlier in the week, Legit.ng reported that Eterna Plc was selected as an authorised distributor of products from the Dangote Refinery in the domestic market.
Olufemi Adewole, the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) revealed that discussions with Dangote Petroleum Refinery regarding the lifting and distribution of refined petroleum products began last year.
According to Leadership, he explained that the purpose of the meeting was to investigate potential collaboration between the refinery and members of DAPPMAN.
Steady supply of refined products for marketers
The widespread presence of DAPPMAN members is crucial for efficiently distributing products from the refinery to consumers nationwide.
Emphasising the positive impact, he highlighted that refining petroleum products at Dangote Refinery would play a significant role in accelerating Nigeria's economic development.
He added that the commencement of the refinery operations would offer DAPPMAN members convenient access to a steady supply of refined petroleum products.
He said:
“We have already established a business relationship with Dangote Refinery. We believe that the relationship is going to be a win-win one. Our association owns 80% of the retail outlets in the country and we have all it takes to ensure smooth distribution of petroleum products from Dangote Refinery across the country.”
Additionally, Clement Isong, the Executive Secretary/Chief Executive Officer of MOMAN, stated that members of MOMAN have completed the registration process with Dangote Petroleum Refinery to serve as marketers for the company's products.
Marketers set to build two more refineries, name locations
In related news, Legit.ng reported that oil marketers plan to establish two additional refineries, joining the likes of Dangote, Port Harcourt, and others.
The president of the Independent Petroleum Marketers Association of Nigeria has disclosed that these new refineries are slated for locations in Lagos and Calabar.
This development follows the directive from the NUPRC, instructing oil companies in Nigeria to provide approximately 483,000 barrels of crude oil daily to support local refineries.
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Source: Legit.ng
