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.
Bitcoin has fallen below $63,000, reaching its lowest level since October 2024 amid weakening investor confidence and increased volatility in the cryptocurrency market.
According to CoinMarketCap data, Bitcoin dropped 13.9 per cent to $62,965 as of 10:20 p.m. on Thursday. The decline comes after months of downward movement, with the cryptocurrency now more than 45 per cent below its October peak.
Ethereum also recorded a sharp decline, falling 13 per cent to $1,863, while the global cryptocurrency market capitalisation dropped to $2.19 trillion.
Analysts reportedly linked the latest decline to a broader sell-off in US technology stocks, which has also affected other risk assets. Bitcoin had reached an all-time high of more than $125,000 on October 5 before falling sharply in the days that followed, highlighting the continued volatility in the crypto market.
Businessman Aliko Dangote has explained why he believes Nigerians should participate in the ownership of his refinery by purchasing shares.
He was asked by singer Davido why Nigerians should participate, and Dangote explained that the initiative would help spread wealth and prosperity across Africa.
“Well, it’s very important because that is the only way to spread prosperity and wealth throughout Africa. And like I said, this is not going to be the first and the last. We will continue with even our fertilizer. By the time we finish listing, every single one will own part of our businesses and we will create a pool of cash…”
He explained that the goal is to create opportunities for more Nigerians to own a stake in the businesses and help spread wealth across the country.
Aliko Dangote speaks on his lineage and addresses not having a son as he was asked about not having a son to carry his name and achievements.
“That is not my priority because God controls everything. You can pray for God to give you a son, but he might be the one to take down the name of the family.”
Instead, he shared that he does not mind not having a son. “I don’t think a son would have done better than the three daughters I have.”
Aside from that, he was also asked about giving advice to young Nigerians. “Work hard, be consistent, focused and know what you want to do.”
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