Dangote Refinery Clarifies Payment and Supply Issues with IPMAN

Dangote Refinery Clarifies Payment and Supply Issues with IPMAN

Dangote Refinery has addressed recent claims made by the Independent Petroleum Marketers Association of Nigeria (IPMAN), stating that it has not received any payments from the group for refined petroleum products.

The refinery’s Group Chief Branding and Communications Officer, Anthony Chiejina, issued a statement on Thursday, clarifying that the claims of IPMAN members facing difficulties loading petrol from the refinery are misleading, as there are currently no direct business dealings between the two entities.

Chiejina emphasised that any payments made by IPMAN were through the Nigerian National Company Limited (NNPC Ltd), not directly to the refinery.

He noted that NNPC Ltd. has not authorised the release of petrol to IPMAN, further stating, “The payment in mention has been made through NNPC Ltd. and not us. NNPC Ltd. has neither approved nor authorised us to release our Premium Motor Spirit (PMS) to IPMAN.”

The refinery highlighted its capability to meet the nation’s demand for various petroleum products, including petrol, diesel, and aviation fuel, with a capacity to load 2,900 trucks per day and evacuate products by sea.

Chiejina advised IPMAN to register with the refinery for direct payments, stressing that the refinery has ample stock to satisfy the needs of its members.

In response to concerns over supply, Aliko Dangote, founder of the Dangote Group, noted that the refinery holds over 500 million litres of gasoline in stock.

However, it remains unclear how long this stock has been available, as the refinery has faced challenges meeting the volumes required by NNPC Ltd. in recent weeks.

This clarification follows a backdrop of tensions between the Dangote Group, NNPC, and various private oil firms over control of the downstream petroleum market.

Allegations have emerged concerning sabotage of the refinery’s operations and quality concerns over diesel products.

Despite these conflicts, the Federal Executive Council (FEC) has instructed NNPC Ltd. to engage with local refineries, including Dangote, to resolve these disputes and facilitate transactions in Naira.

In a move towards increased competition, the Nigerian government has recently allowed other marketers to purchase petrol directly from Dangote Refinery, ending NNPC Ltd’s exclusive purchasing agreement.

This change enables a more competitive market for refined products and aims to alleviate some of the supply challenges currently faced.