Marketers Challenge NNPC's Exclusive Off-Taker Role for Dangote Petroleum

Olufemi Adeyemi 

Marketers have raised significant concerns regarding the appointment of NNPC Limited as the exclusive off-taker of petrol from the Dangote Refinery, cautioning that this decision may foster a monopoly and result in excessive profits within the downstream sector of the petroleum industry.

Historically, NNPC has been the only entity importing petrol into the nation, while marketers and other stakeholders have faced challenges in obtaining the necessary foreign exchange to compete effectively with the national oil company.

In an interview with Vanguard, Chief Chinedu Ukadike, the Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), expressed that while marketers do not oppose the government's decision to raise petrol prices, they strongly disagree with NNPC being the sole off-taker from Dangote.

He highlighted the necessity of ensuring product availability for all marketers in the downstream sector.

"The key issue is availability," Ukadike stated. "We are not against the increase in fuel prices, but the fuel must be accessible for us to purchase.

The current arrangement that designates NNPC as the sole off-taker from Dangote needs to be reassessed.

As significant stakeholders and independent marketers, we believe that Dangote should be permitted to sell directly to us.

The distribution process should be open to allow other stakeholders to acquire the product, similar to NNPC."

He further contended that "NNPC operates as a competitor in the downstream sector, and it is inappropriate to grant exclusive access to one competitor while others are reliant on a single source.

This situation will inevitably lead to monopoly, profiteering, and stagnation in distribution."

Ukadike urged the Federal Government to take action, asserting, "It is essential that what benefits one also benefits all.

IPMAN should be allowed to procure products directly, as we can efficiently distribute them due to our extensive network across the country and our reliability."

Engr. Atinuke Owolabi, the President of the Association of Professional Women Engineers of Nigeria, Lagos Chapter, expressed her views on the matter.

She stated, "It is essential to verify the pricing with Dangote. I have read that the federal government has not authorized NNPCL to raise fuel prices. I am perplexed as to why NNPCL seeks a direct supply from Dangote. It is imperative that Dangote distributes fuel to all interested buyers. Allowing NNPCL to be the exclusive distributor of Dangote fuel poses significant risks."

"We are opposed to a monopoly. Dangote should supply all marketers to ensure equitable access to fuel, which rightfully belongs to the public. There appear to be influential groups within NNPCL, and we must proceed with caution," she further remarked.