IPMAN says Dangote’s free fuel distribution initiative will tackle challenges facing stakeholders in Nigeria’s downstream petroleum sector
Blessing Iruoma
The Independent Petroleum Marketers Association of Nigeria (IPMAN), Rivers State Chapter, has commended the management of Dangote Petroleum Refinery on the plan to commenced free distribution of petrol and diesel to marketers, dealers, and large-scale consumers nationwide.
Dangote Refinery had announced that the distribution of the petroleum products will begin on August 15, 2025.
Chairman of IPMAN in the State, Tekena Ikpaki, who spoke with journalists yesterday in Port Harcourt, said the initiative is a bold and strategic aimed at addressing some of the longstanding challenges facing stakeholders in Nigeria’s downstream petroleum sector, particularly independent marketers.
He listed the challenges to include “inconsistent supply, high transportation costs, infrastructural bottlenecks, and fluctuating market prices, all of which have adversely affected our ability to serve end users efficiently and sustainably”.
Ikpaki said “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”.
According to him, 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’.
The IPMAN boss in Rivers noted that the development is timely, “especially as the country continues to grapple with economic recovery efforts and energy supply challenges”.
He said “By offering an alternative and reliable supply route alongside the Nigerian National Petroleum Company Limited (NNPCL), the Dangote Refinery provides marketers with critical access to competitive product sources, thereby reducing overdependence on any single supplier and promoting healthy competition”.
The association expressed the believe that such a multi-source supply model is essential to building a robust, competitive, and fair petroleum distribution ecosystem.
Ikpaki continued that “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.”
IPMAN advised that while the offer of free product distribution may appear generous, all stakeholders; including government regulators, should ensure that such programs are implemented transparently and inclusively, so that independent marketers across all regions benefit equitably.
The association there reiterate their support for investments that improve the efficiency of fuel supply chains, including logistics, storage infrastructure, and pricing systems.
“At the same time, we 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.
“Importantly, we acknowledge that this initiative by Dangote Petroleum Refinery will complement the Crude-for-Naira initiative being implemented by the NNPCL, aimed at stabilizing the naira and ensuring consistent fuel supply. Together, these efforts by two of the nation’s energy giants represent a shared commitment to national growth, energy security, and market stability.”
The association further appreciated both Dangote Petroleum Refinery and NNPCL for their resilience, innovation, and continued support for stakeholders across the petroleum value chain, saying “Their combined efforts inspire confidence and offer renewed hope for a more efficient, affordable, and inclusive energy future for Nigeria”.
“I reaffirm our 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 this new distribution initiative are maximized for all”, Ikpaki added.
He called on all stakeholders in the industry to come together to build a more resilient, inclusive, and prosperous downstream petroleum sector for the benefit of the Nigerian economy and the welfare of our people.
