Dangote Refinery announced on Thursday that it has not received any payments for the acquisition of refined petroleum products from the Independent Petroleum Marketers Association of Nigeria (IPMAN).
This information was shared by the company’s Group Chief Branding and Communications Officer, Anthony Chiejina, in a statement released on the same day.
The announcement comes in response to claims made by IPMAN regarding their inability to load petrol from the refinery for several days. During an appearance on Channels Television’s Sunrise Daily programme on Wednesday, IPMAN President Abubakar Garima stated that their members had made a payment of N40 billion to the Nigerian National Company Limited (NNPC Ltd) but were still unable to load petrol.
In its statement, Dangote Refinery clarified that it is inaccurate to imply that IPMAN members are facing challenges in loading refined products from its facility, as the refinery does not have any direct business relationships with them.
Chiejina pointed out that the payment was made through NNPC Ltd, and emphasized that NNPC Ltd has not granted approval or authorization for the release of petrol to IPMAN.
“The Dangote Petroleum Refinery wishes to clarify that it has not received any payments from the IPMAN to purchase refined petroleum products.Although discussions are ongoing with IPMAN, it is misleading to suggest that they (IPMAN Members) are experiencing difficulties loading refined products from our Petroleum Refinery, as we currently have no direct business dealings with them.
“Consequently, we cannot be held responsible for any payments made to other entities. The payment in mention has been made through the NNPC Ltd, and not us. In the same vein, NNPC Ltd has neither approved, nor authorised us to release our Premium Motor Spirit (PMS) to IPMAN,” he said.
“We would like to emphasise that we can meet the nation’s demand for all petroleum products, including petrol, diesel, and aviation fuel.”
Currently, the refinery is capable of loading 2,900 trucks daily and has also been exporting petroleum products via maritime routes.
“We advise IPMAN to register with us and make direct payment as we have more than enough petroleum products to satisfy the needs of their members.”
The refinery called on all stakeholders to avoid making baseless claims in the media, as such actions could jeopardize the economic restructuring initiatives of President Bola Tinubu.
He emphasized that conducting business based on public speculation is both unproductive and unpatriotic.
"In the best interest of our nation, we urge all stakeholders to work together and follow President Tinubu's guidance, fostering a collaborative approach instead of engaging in media disputes and unnecessary propaganda," he stated.
On Tuesday, Aliko Dangote, the founder and president/CEO of the Dangote Group, mentioned that his refinery has over 500 million liters of petrol in stock, yet marketers have not been collecting the product.
Mr. Dangote did not specify how long the 500 million liters of petrol had been refined and stored at his refinery, which has a capacity of 650,000 barrels per day.
However, PREMIUM TIMES reported that data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) indicated that his refinery had been unable to fulfill the petrol volume requested by NNPC Ltd for three consecutive weeks.
According to the Dangote Evacuation Report reviewed by this publication, the refinery produced only 148 million litres of petrol between 15 September and 5 October, falling short of the expected 575 million litres.
Dangote Refinery-NNPC Dispute
Recently, the Dangote Group has been embroiled in conflicts with the NNPC, petroleum regulators, and several private oil companies regarding the management of the downstream petroleum market.
In June, the Dangote Group accused certain international oil firms of undermining the refinery's operations by either withholding crude supplies or charging higher premiums than prevailing market rates.
Additionally, the group faced disputes with the NMDPRA, which alleged that the diesel produced by the refinery contained sulphur levels exceeding permissible limits. The regulator also accused Dangote of attempting to establish a monopoly.
In response to these claims, Mr. Dangote invited lawmakers visiting the refinery to a laboratory on-site, where diesel from the refinery was tested alongside two imported samples. The results indicated that the sulphur content in the refinery's diesel was significantly lower than that of the imported samples.
In July, the Federal Executive Council (FEC) instructed NNPC Ltd to collaborate with Dangote refinery and other local refineries to address the ongoing issues regarding crude oil sales to them.
The FEC, led by President Bola Tinubu, also mandated that crude oil transactions with the refineries be conducted in naira, and that these refineries, situated in Nigeria, should sell their refined products to the domestic market in naira as well.
In October, the Nigerian government announced the official initiation of crude oil and refined petroleum product sales in Naira, effective from October 1.
Additionally, NNPC Ltd terminated its exclusive purchasing agreement with Dangote Refinery, allowing other marketers to procure petrol directly from the refinery.
This change signifies that NNPC will no longer serve as the exclusive off-taker, enabling marketers to engage in direct price negotiations with Dangote Refinery.