Dangote Petroleum Refinery says it has commenced registration of distributors for the lifting and distribution of refined petroleum products across the country.
The largest single-train refinery in the world began production on January 12, 2024, after receiving six million barrels of crude oil cargo.
In a statement on Saturday, the company said members of the three prominent distribution associations that constitute 75 percent of the total market in Nigeria have been registered.
The associations include, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Independent Petroleum Marketers Association of Nigeria, (IPMAN), and the Major Oil Marketers Association of Nigeria, (MOMAN).
The firm said it is also considering other marketers that have signified interest in the lifting and distribution of its petroleum products.
NO APPOINTED DISTRIBUTORS
According to the statement, the refinery can meet 100 percent of Nigeria’s requirement for all refined products (gasoline, 45 million litres per day; diesel, 14 million litres per day; kerosene, 10 million litres per day, and aviation jet fuel, 2 million litres per day) and have surplus for export.
Meanwhile, the management also denied reports claiming that the refinery appointed distributors of its products.
While registration of distributors has commenced, the organisation said the process of appointment is ongoing.
“All news regarding the Dangote Refinery should not be taken as a matter of fact if not officially communicated by the company”, the statement reads.
‘RELATIONSHIP WILL BE WIN-WIN’
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Commenting on the development, Olufemi Adewole, executive secretary, DAPPMAN, said the association commenced discussions with the company regarding the lifting and distribution of refined petroleum products last year.
He said the meeting was held between Winifred Akpani, DAPPMAN chairman, Mahmud Tukur, second vice-chairman, and Aliko Dangote, president of Dangote Group.
According to Adewole, the meeting was to explore collaboration between the refinery and DAPPMAN members whose nationwide presence will be critical in distributing products from the plant to consumers.
He said the refining of petroleum products from Dangote Refinery would “accelerate Nigeria’s economic development and provide DAPPMAN members with seamless access to refined petroleum products”.
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On his part, Hammed Fasola, national vice-president of IPMAN, said the association had declared its intention to lift and distribute petroleum products from Dangote Refinery.
“We have already established a business relationship with Dangote Refinery. We believe that the relationship is going to be a win-win one,” he said.
“Our association owns 80 percent of the retail outlets in the country and we have all it takes to ensure smooth distribution of petroleum products from Dangote Refinery across the country.”
Also, Clement Isong, executive secretary and chief executive officer of MOMAN, confirmed members’ registration to become marketers of Dangote’s petroleum products.
“I confirm that my members have registered with them. We were waiting for the production to start and now it has started, and they will start discussing the commercial terms,” Isong said.
“So yes, major marketers and other players will buy for the market. The important thing was the registration.
“Now the commercial terms will be agreed with each marketer and then they will buy from them. There are several ways you can buy from them. They have loading ranks, over 90, so you can take your truck to go and pick. You can also use vessels to pick. Those are the two ways you pick products.”
The 650,000 bpd capacity refinery was inaugurated by former President Muhammadu Buhari in May 2023.