We’re in Full Support of Dangote’s Distribution Plan – IPMAN President, Abubakar Shettima

In a recent interview on Arise News, Abubakar Shettima, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), expressed strong support for Dangote Refinery’s new plan to distribute petrol across Nigeria using 4,000 CNG-powered trucks starting August 15. The initiative aims to enhance fuel availability and reduce logistical challenges for independent petroleum marketers, a move Shettima described as a “good development.”

A Positive Step for Independent Marketers

Shettima highlighted the longstanding relationship between IPMAN and Dangote Refinery, noting that independent marketers have been purchasing products directly from the refinery. “We have been buying products through Dangote refinery, and that is the reason you have seen for a very long time, we have not been coming here and start crying,” he said. The new distribution plan, according to Shettima, further simplifies the process by delivering petrol to depots nationwide, reducing the need for marketers to source fuel from distant locations.

“Instead of transporting product from Lagos or any other place, if you can be able to distribute this product in the country, at the end of the day, we independent petroleum marketers, since we have our fueling station, we can buy it just like what is happening before,” Shettima explained. He emphasized that the plan aligns with IPMAN’s operational model, as marketers primarily control fueling stations and prioritize product availability.

Addressing Cost and Accessibility Concerns

One of the key benefits Shettima anticipates is a potential reduction in fuel prices due to the use of CNG-powered trucks, which are more cost-efficient than traditional gas-powered vehicles. “Since he said he is going to use the CNG trucks, probably we are expecting when he uses those trucks, the price will come a little bit down,” he noted. IPMAN is actively engaging with Dangote Refinery to ensure pricing remains affordable, allowing marketers to sell fuel to consumers at reasonable rates.

Shettima also addressed concerns about the impact on existing depots, clarifying that IPMAN does not foresee significant challenges. “To us, we independent marketers, it is not a major problem because normally we control fueling stations,” he stated, distinguishing IPMAN’s role from that of depot owners represented by the Depot and Petroleum Products Marketers Association of Nigeria (DAPMAN). He suggested that DAPMAN could address their specific concerns separately.

Dispelling Monopoly Fears

Responding to fears that Dangote’s plan could lead to a monopoly in the downstream oil sector, Shettima dismissed the notion, pointing to the emergence of other refineries in Nigeria. “When people are talking of monopoly, if you observe, there are so many refineries that are coming up, apart from Dangote,” he said. He argued that the sector’s liberalization, particularly following the removal of fuel subsidies, has encouraged competition and innovation, enabling Dangote to enhance fuel availability nationwide.

Shettima credited Dangote Refinery with alleviating fuel scarcity, noting, “When Dangote came in stream, you have been seeing the way the fuel is available everywhere, there is no much queue in the country, anywhere you go, it is available.” This increased availability has revitalized many fueling stations that were previously “dry” due to supply challenges.

Flexibility and Collaboration

Shettima underscored IPMAN’s readiness to collaborate with Dangote Refinery, emphasizing the association’s flexibility in adapting to the new distribution system. “Immediately when we have seen this offer, we started contact with him so that at least we can see how we can queue into system to see that we get the product available to our fueling stations,” he said. He also clarified that the plan does not prevent marketers from using their own trucks to transport fuel, offering them the choice to opt for Dangote’s delivery system based on profitability.

A Promising Future for Fuel Distribution

IPMAN’s unequivocal support for Dangote Refinery’s distribution plan signals a positive shift in Nigeria’s downstream oil sector. By leveraging CNG technology and a robust distribution network, the initiative promises to enhance fuel accessibility, reduce costs, and support independent marketers in meeting consumer demand. As Shettima concluded, “We independent marketers, we are supporting him. We are not against it because it’s even reducing some certain hardship to some of our marketers.”

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