Business
Dangote and IPMAN Deal Set to Reduce Fuel Prices
The Independent Petroleum Marketers Association of Nigeria (IPMAN) recently announced a breakthrough that could lead to a significant drop in fuel prices across the country.
With an agreement to purchase Premium Motor Spirit (PMS) directly from Dangote Refinery, IPMAN believes this direct sales deal will help drive down the pump price of petrol and improve supply nationwide.
IPMAN’s National Secretary, James Tor, revealed that this arrangement is expected to bypass middlemen, which previously influenced pricing, and instead allow Dangote Refinery to directly supply petrol to IPMAN’s members.
This development came shortly after IPMAN’s President, Abubakar Maigandi, confirmed that Dangote Refinery, Africa’s largest with a production capacity of 650,000 barrels per day, has formally agreed to partner with the association.
Previously, the Nigerian National Petroleum Company Limited (NNPCL) handled the distribution, but the shift towards direct sales with Dangote aims to enhance affordability and availability of petrol throughout Nigeria.
Tor emphasized that the arrangement could reduce petrol prices at IPMAN retail stations to below N1,150 per liter, depending on the price Dangote Refinery sets.
“If the deal goes forward as planned, Nigerians will see a significant reduction in fuel costs at our stations,” Tor remarked.
He added that this agreement would not only lead to cost savings for consumers but also guarantee a steady supply, especially since IPMAN has an extensive network of filling stations nationwide.
He mentioned that IPMAN members have the potential to make Dangote’s fuel accessible across various regions, reducing reliance on imported fuel.
Anthony Chiejina, a spokesperson for Dangote Group, confirmed that the direct sale to IPMAN had been finalized, a move many have been eagerly awaiting.
For weeks, petroleum marketers had been pursuing direct access to Dangote’s petrol supply, especially after the federal government revised its policy to allow multiple participants in the distribution of Dangote’s petrol, moving away from NNPCL’s sole rights as the off-taker.
This policy shift is part of the Naira-for-crude initiative, which aims to stabilize Nigeria’s foreign exchange by allowing oil trade directly in Naira.
Under the leadership of Finance Minister Wale Edun, the committee overseeing this plan gave the green light for marketers to lift petrol directly from Dangote Refinery on October 11, 2024.
Dangote Refinery recently priced its gasoline between N960 and N990 per liter for wholesale buyers, but imported fuel landing costs were reportedly lower in early November, around N971 per liter.
Despite these figures, petrol has been selling at around N1,060 to N1,200 per liter at filling stations, making fuel affordability a concern for many Nigerians.
Olayemi Cardoso, the Governor of the Central Bank of Nigeria, has made a passionate appeal to Nigerians, particularly the youth, urging them not to leave the country.
In a keynote address at the 59th annual Bankers Dinner hosted by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, Cardoso highlighted the importance of staying and contributing to the growth of Nigeria’s economy.
Cardoso acknowledged the challenges facing the country but reassured citizens that the Central Bank was actively working to create an environment where both individuals and businesses could flourish.
He pointed out that leaving the country at this time could have detrimental effects, particularly for those who might choose to sell off their assets in the process.
“If you leave now, you’ll be selling your assets for a fraction of their value,” he explained.
“There are external forces looking for bargains who would take advantage of this situation, pocketing the profits and waiting for a time to sell it for a higher price.”
He further emphasized that now more than ever, Nigerians needed to stay and be part of the solution to the country’s problems.
“This is a critical time, and we need everyone’s efforts to help us turn things around,” he said.
“Leaving may seem like an easy solution, but it’s important to be part of the change and help shape the future of our nation.”
Despite the economic struggles Nigeria has faced, Cardoso remains optimistic about the country’s prospects.
He pointed to the growing interest in the Nigerian market, citing positive developments over the last year and particularly in the past six months.
“Opportunities are everywhere if we stay committed and invested in our nation’s future,” he remarked, adding that the reforms introduced by the Central Bank, although tough, were necessary to address the issues of today while securing better opportunities for tomorrow.
The United Kingdom plans to regulate cryptocurrency full time, a stamen was released on Tuesday stating new plans for crypto in 2026. This announcement was made amid the high demand of Bitcoin, crypto highly increased since the appointment of Donald Trump as president.
Donald Trump has made plans to be supportive and to better the cryptocurrency world, this alone gave the finance a huge boost and has been in high demand.
Dangote Price of cement increases from 50kg bag for 8800 thousand naira to Ten thousand naira in some states. The price inflation has sparked concerns as it affects construction workers and homebuilders.
Earlier in the year, the House of Representative summoned popular cement manufactures and addressed the issue of price. However the prices still remains and unchanged and increases, leaving building materials expensive.
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