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.
Business
Dangote Petroleum Refinery Begins Exportation Of Products To Neighbouring West African Countries
Dangote Petroleum Refinery begins exportation of products to neighbouring West African countries. A report was made that the Dangote refinery just shipped gasoline to the coast of Togo, West Africa. Although the shipment of the gasoline is going to the coast of Togo it can also be taken somewhere else in West Africa.
Chairman of NPA, Ghana speaks at the OTL Africa Downstream Oil Conference in Lagos states that importing from Nigeria reduces prices and freight costs for them rather than importing from Europe.
“If the refinery reaches 650,000bpd a day capacity, all that volume cannot be consumed by Nigeria alone, so instead of us importing as we do right now from Rotterdam, it will be much easier for us to import from Nigeria and I believe that will bring down our prices,”
Business
FBN Shareholder Approve #350 Billion Capital Raise And Rebrand
FBN Holdings shareholders approve the plan of raising #350billion in additional capital and also changing its brand name. These discussions happened in the Annual General Meeting (AGM) and were submitted to the Nigerian Exchange Limited.
The Shareholders also approved of a dividend payment of 40 kobo per 50 kobo ordinary share, which will result to #14.36 billion for 2023 financial year.
This capital raise will include issuing shares, private placements or right issues concluded and approved by the board of directors. It will align with the initiate to raise #150 billion issues by the Central Bank of Nigeria.
Business
CBN and Finance Ministry Share Concerns Over Investment and Securities Proposed Bill
Concerns have been raised by The Central Bank of Nigeria (CBN) and the Ministry of Finance, concerning the Investment and Securities Bill which was proposed. The bill aims to replace 2007 Act and to update capital market regulations.
The CBN representative, Dr Tukur at the National Assembly hearing, opposed to the granting of the Securities and Exchange Commission over the public companies.
The Finance Minster, Wale Edun also emphasize on the impact of the bill and the provision it will offer the SEC board members. However the SEC Director General defended the bill and stated it has a benefitting role in Nigeria’s capital market globally.
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