Oyebanji lauds Dangote, major marketers for alignment, hails move as a step toward downstream stability
,..”new framework could sideline IPMAN and PETROAN as supply is routed through coastal depot owners” – industry sources warn
… PETROAN holds talks with NMDPRA ACE over petrol supply shake-up
Oredola Adeola
Mr. Tunji Oyebanji, a former Chairman of the Major Energies Marketers Association of Nigeria (MEMAN), reacting to the development, commended Dangote Petroleum Refinery and major marketers for structured offtake agreement to ensure nationwide distribution and eliminate supply instability.
He made this known in a chat with Advisors Reports on Wednesday on the sideline of the announcement by Dangote.
Oyebanji, Managing Director/Chief Executive Officer of 11 Plc and a party to the offtake arrangement, said credit should be given to Dangote, and twelve major marketing companies for agreeing to the NMDPRA’s backed revised distribution framework and opting for dialogue and market alignment.
According to him the development was a positive step toward stabilising Nigeria’s downstream petroleum sector.
Oyebanji said ongoing meetings and discussions between representatives of the industry and the refinery made it easy to link the latest developments to the outcomes of those engagements.
“Meetings and discussions have been going on with some representatives of the industry and the refinery, and it is easy to ascribe the latest developments to the outcome of those ongoing discussions,” he said.
He further expressed optimism that the engagement-driven approach would help ease tensions and improve market stability, noting that dialogue remains more effective than public disputes.
“Personally, I believe constant dialogue with the refinery and the major marketers will eventually resolve the issues that have arisen. When a new refinery of that scale comes on stream, it is a major gamechanger for the industry, and it naturally takes time for things to settle and align,” Oyebanji said.
While acknowledging that challenges remain, he emphasised that the recent announcement suggests progress has been made.
“Are we in the promised land yet? No. There are still some areas to be worked on, and I am not sure this will immediately affect the entire market. But it is clearly a step in the right direction, and we expect things to continue to improve,” he added.
Oyebanji emphasised that industry-wide support for the refinery does not negate the need for inclusiveness across the value chain.
“Everybody is in support of the refinery, and this is good for Nigeria. At the same time, all the major players want to remain in the value chain and survive.
“If this announcement has come, it suggests that some level of alignment has been reached. Hopefully, this will lead to more stability in the market as discussions continue,” Oyebanji said.
Meanwhile, Abubakar Shettima, National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), was not available to comment on the latest developments in the downstream market, as efforts by Advisors Reports to reach him proved abortive as at the time of filing this report.
Recall that Shettima had confirmed earlier in January that the marketers’ arrangement with Dangote refinery was open to all qualified marketers, bulk consumers and filling station operators.
He noted at that time that IPMAN members were benefiting from the refinery’s commitment to direct delivery to filling stations.
However, Advisors Reports gathered that the arrangement has allegedly collapsed following the commencement—and subsequent suspension—of coastal loading activities.
According to the industry source, the marketers’ supply programme, which commenced in November 2025, was expanded to about 1.5 billion litres between December 2025 and January 2026, following the breakdown of earlier supply arrangements between the refinery and depot owners in October 2025.
That breakdown was attributed to a sharp surge in petrol imports recorded in November 2025.
During the period, Dangote made the arrangement more attractive to last-mile marketers by cutting minimum purchase volumes from two million litres to 250,000 litres and introducing a 10-day credit facility supported by bank guarantees.
On December 16, 2025, alone, the refinery confirmed that it loaded between 31 million and 48 million litres of PMS daily from its gantry.
Meanwhile, another industry source, who requested anonymity, told Advisors Reports that the refinery’s newly revised distribution framework in 2026 has resulted in a significant shift in coastal and gantry loading patterns nationwide.
The source characterised the new framework as “unofficial,” claiming that members of the DAPPMAN and MEMAN could opt out of the arrangement without sanctions if they possess valid import licences or secure cheaper supply alternatives.
He further claimed that the shift has effectively ended the incentive-based arrangements previously extended to IPMAN and PETROAN members.
According to the source, IPMAN and PETROAN—often described as last-mile suppliers—played a stabilising role during the November–December 2025 market disruption, when petrol imports surged following import licensing decisions approved by the former leadership of the NMDPRA.
He added that those approvals reportedly sanctioned volumes that exceeded prevailing domestic demand.
The industry source further said that most loadings in October and early November 2025 were executed through coastal channels to DAPPMAN and MEMAN members.
He said, “However, a late-November surge in imports—led by the Nigerian National Petroleum Company Limited and about 43 other marketers—was triggered when international supply, particularly from Lome, Togo, proved cheaper than domestic ex-depot pricing.
“That development reportedly led Dangote Refinery to suspend coastal loading in December, prompting IPMAN and PETROAN members to step in as alternative offtakers,” he said.
The source also alleged that import permits covering about 100,000 tonnes were issued to some companies as early as the third quarter to convert existing import quotas, adding to pressure on the refinery to reduce prices amid rising inventory levels.
He warned that smaller and medium-sized operators—initially attracted by reduced minimum volumes and credit incentives—are now being sidelined as larger marketers reassert influence over the market.
The source further alleged that Engr. Saidu A Mohammed, Authority Chief Executive of NMDPRA is operating as a more independent regulator, but one perceived by some stakeholders as favouring Dangote and MRS.
He justified the claim with the fact that only MRS Oil Nigeria Plc was issued approval for approximately 300,000 tonnes of PMS imports in January 2026 for the first quarter.
According to the source, the renewed competition between imported cargo and domestic supply—exacerbated by Dangote Refinery’s recent price adjustments, including the January 29 ex-depot increase—could ultimately translate into higher pump prices for consumers if pricing tensions persist.
Meanwhile, the leadership of the PETROAN, led by its President, Dr. Billy Gillis-Harry, held discussions with the Authority’s Chief Executive (ACE) on Wednesday, to discuss the implications of the new PMS supply framework and its impact on retail petroleum operations.
The engagement centred on operational efficiency, regulatory compliance, product availability, pricing stability and consumer protection.
Dr. Gillis-Harry commended the regulator’s reform agenda and underscored the importance of sustained stakeholder engagement to address challenges facing retail outlet operators, while the ACE reaffirmed the Authority’s commitment to a level playing field that promotes transparency, safety, investment and sustainable growth.
