Dangote Oil Refinery denies payments to IPMAN amid ongoing negotiations

Timilehin Adejumobi -
Key Points
  • Dangote Refinery refutes receiving payments from IPMAN for refined products, clarifying that no formal sales agreements have been established with the association.
  • Refinery reaffirms its operational capacity to meet national demand, emphasizing it can load up to 2,900 trucks daily and offers maritime distribution.
  • Aliko Dangote's refinery progresses with direct PMS sales to select marketers, and crude production is expected to start by late 2024.

Dangote Oil Refinery, a major player in Africa’s energy landscape owned by Aliko Dangote, Africa’s wealthiest individual, has refuted claims of receiving payments from the Independent Petroleum Marketers Association of Nigeria (IPMAN) for the purchase of refined products.

In a recent statement, Anthony Chiejina, Chief Branding and Communications Officer of Dangote Group, clarified that while ongoing discussions with IPMAN are in progress, no formal sales arrangements have been established.

Clarification from Dangote Refinery

“It is misleading to imply that IPMAN members are encountering challenges in loading refined products from our facility,” the statement emphasized, noting the refinery has “no direct business dealings” with IPMAN. “We cannot be held accountable for payments made to other parties.”

The refinery specified that any referenced payments were processed through the Nigerian National Petroleum Company (NNPC) Limited, not directly to them. It reiterated its robust capability to meet national demand for various petroleum products, including petrol, diesel, and aviation fuel.

Highlighting its operational prowess, the refinery noted that it is equipped to load up to 2,900 trucks daily, supplemented by an active maritime distribution network. “We possess ample petroleum products to satisfy IPMAN’s requirements, and we invite them to register with us for direct payments,” remarked Chiejina.

Chiejina urged stakeholders to refrain from making unfounded public statements that could undermine the economic initiatives of President Bola Ahmed Tinubu. “Engaging in business through public speculation is detrimental and unpatriotic. In the spirit of national interest, we advocate for collaboration and adherence to President Tinubu's directives, prioritizing a cooperative approach over media disputes and unnecessary propaganda.”

Transforming Nigeria's energy sector

Located near Lagos, the Dangote Petrochemical Complex is a major milestone in Nigerian industrial development, featuring a one-million-metric-tonne-per-year polypropylene plant and two large fertilizer trains with a combined annual capacity of three million tonnes of urea.

With a net worth of $27.8 billion, as reported by the Bloomberg Billionaires Index, Aliko Dangote has recently risen to the position of the world’s 64th richest individual, reinforcing his status as the richest Black person globally.

In recent strategic moves, the refinery has begun direct sales of Premium Motor Spirit (PMS), commonly referred to as petrol, to selected oil marketers, thereby bypassing the Nigerian National Petroleum Company Limited (NNPC).

Additionally, the Dangote Group plans to initiate crude oil production by the end of 2024, marking a significant achievement for the refinery following months of crude supply challenges.