The Nigerian National Petroleum Company Limited and major oil marketers are currently engaged in discussions on strategies to eliminate the importation of petrol into the country, with a focus on increasing reliance on off-taking from the Dangote Refinery.
This was part of the discussions at a meeting organised by the NNPCL Group Chief Executive Officer, Mele Kyari, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
In attendance were representatives of the Major Oil Marketers Association of Nigeria, Depot and Petroleum Products Marketers Association of Nigeria, and key stakeholders from companies such as 11 Plc, Matrix, and AA Rano, among other stakeholders at the NNPCL towers during the week in Abuja.
Sunday PUNCH learnt that the meeting was in growing confidence of Dangote Refinery’s ability to meet the nation’s domestic fuel demand and the need to cut fuel imports.
One of the major marketers who attended the meeting confirmed to our correspondents on Saturday that the discussion was still ongoing on the plan.
The source said some stakeholders needed to be carried along in the discussion before an agreement could be consummated.
He said, “To the best of my knowledge, that discussion has not been concluded. The information in circulation was leaked. Until the issue has been discussed and everyone has agreed, we can announce it.
“Some stakeholders were not at the meeting but had to be carried along. So, until all of them have agreed to the communique then we have a deal.
“Yes, the meeting took place but there were some points highlighted and agreed upon, so we have to make sure everything is in sync. There are issues to be agreed with all the local refineries. So, once they agree with the terms, then we would come back to the table and finalise the discussion.”
Another official in attendance stated, “NNPCL emphasised that going forward, no marketer would be permitted to import petrol without specific clearance tied to Dangote’s capacity”.
The decision, while strategic, has sparked unease among oil marketers.
Stakeholders raised concerns about Dangote Refinery’s ability to reliably supply the market and maintain consistent distribution across Nigeria’s expansive network.
Despite its capacity, marketers questioned whether the refinery’s production and logistical systems were adequately prepared to handle the country’s fluctuating demand.
Another contentious issue discussed at the meeting was the payment structure proposed by Dangote Refinery.
Unlike the traditional importation system, where marketers settle payments upon product arrival at depots, Dangote insists on advance payment from marketers.
This shift has raised concerns about cash flow and operational feasibility for smaller players in the downstream sector.
A stakeholder highlighted, “Paying upfront significantly increases financial pressure on marketers, particularly those with limited capital. For decades, we’ve operated on a post-delivery payment model, which aligns better with our liquidity cycles.”
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