NNPC Remains Sole Buyer of Dangote Refinery Petrol Despite Government Directive

The Nigerian National Petroleum Company Limited (NNPC) continues to be the exclusive buyer of petrol from the Dangote Petroleum Refinery, despite a recent directive from the Federal Government allowing other oil marketers to begin loading Premium Motor Spirit (PMS) from the facility.

Oil marketers confirmed on Wednesday that NNPC’s exclusive agreement with the $20 billion refinery, located in Lekki, Lagos, remains in effect. This means that until the deal is concluded, NNPC will remain the sole off-taker of petrol from the Dangote refinery. Neither NNPC nor the Dangote refinery disclosed when this agreement is expected to end.

The Federal Government had announced on October 11, 2024, through the Ministry of Finance, that oil marketers could now purchase petrol directly from local refineries, including Dangote, bypassing NNPC’s intermediary role. The statement emphasized that this move would increase competition and enhance market efficiency by allowing marketers to negotiate directly with refineries on commercial terms.

However, during a meeting on October 15, 2024, members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) were informed that NNPC’s agreement with Dangote remains in place. IPMAN’s Zonal Chairman for the South-West, Dele Tajudeen, revealed in a notice to members that until the agreement between NNPC and Dangote is terminated, direct sales to other marketers cannot proceed.

“The Vice President of Dangote confirmed that while the government has issued directives to commence sales to marketers, the pending agreement with NNPC still subsists,” the notice stated.

Marketers who wish to benefit from future direct purchases are encouraged to register with IPMAN as the association prepares for potential direct lifting from the Dangote refinery once the NNPC agreement is resolved.

Meanwhile, major oil marketers confirmed that they continue to lift products from the Dangote refinery through NNPC, using pro forma invoices. As of now, both the Dangote refinery and NNPC have declined to provide further details on the status of their agreement.