Marketers Applaud Cost-Relief and Direct Access to Refined Products
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has thrown its full support behind the Dangote Refinery’s newly announced plan to distribute petrol and diesel free of logistics charges to marketers across Nigeria. The initiative, which takes effect from August 15, 2025, is being seen as a landmark development that could reshape the nation’s downstream oil and gas distribution landscape.
Speaking on Channels Television’s Sunrise Daily on Friday, Chinedu Ukadike, National Publicity Secretary of IPMAN, lauded Aliko Dangote for identifying structural inefficiencies in the sector and taking decisive action to address them.
“If you look at the Dangote statement, it is a strong policy statement,” Ukadike said. “He foresaw a lot of problems in the oil and gas industry and decided to tackle them. It is something we welcome with a lot of cheers because it will bring fuel cheaper to our doorsteps.”
Logistics Burden Lifted from Marketers
One of the most applauded elements of the initiative is the cost savings it promises for independent marketers. For years, operators have had to bear the brunt of transporting petroleum products from coastal depots—owned primarily by DAPMAN members—due to the non-functional state of Nigeria’s pipeline infrastructure.
“Our pipelines have gone for years, nobody is talking about the pipelines wired all over the country from the 21 depots,” Ukadike noted. “Products are not being moved. We are suffering the brunt of bringing these products from the seashores of the country. But if you look at Dangote’s statement, you will see that a heavy load has been lifted off the shoulders of independent marketers.”
A Direct Distribution Model with CNG-Powered Fleet
As part of the rollout, the Dangote Refinery has procured 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers to handle direct delivery of fuel to marketers, dealers, and major end-users. The use of CNG vehicles also reflects an environmentally conscious shift in logistics, aligning with Nigeria’s broader energy transition goals.
The refinery’s strategy aims to ensure timely, cost-efficient, and cleaner distribution of products across the country, further strengthening national fuel accessibility.
Mixed Reactions from Industry Players
While IPMAN has welcomed the development, other stakeholders have expressed reservations. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) voiced concerns that the new system could bypass existing distribution networks, potentially affecting depot owners, truck operators, and retail outlet owners who have ongoing supply contracts with multinationals and large corporates.
Despite the criticism, Ukadike argued that Dangote, as the owner of the refinery, has the autonomy to determine the most efficient distribution channels for his products.
“As a refinery, Dangote has the right to find a better way to get his products to the marketers,” he asserted.
A Step Toward Systemic Efficiency
For many in the sector, the move is seen not just as a business decision, but a step toward solving Nigeria’s long-standing downstream logistical challenges. With the nation’s pipeline infrastructure largely dormant and fuel transportation heavily reliant on private arrangements, the Dangote initiative could usher in a new era of efficiency, cost reduction, and improved market access for smaller players.
IPMAN’s endorsement of the move signals widespread anticipation among marketers, who see this as an opportunity to improve profit margins, enhance service delivery, and ultimately lower pump prices for consumers.
As the August rollout date approaches, industry watchers will be monitoring closely to see how this bold new approach plays out—and whether it sets a precedent for future private sector-led reforms in Nigeria’s petroleum supply chain.