The Independent Petroleum Marketers Association of Nigeria (IPMAN) has unveiled an ambitious plan that could significantly reshape Nigeria’s downstream petroleum sector, as it disclosed intentions to venture into refinery ownership while directing its members to prioritise fuel supply from the Dangote Petroleum Refinery.
The move signals a decisive shift by independent marketers towards deeper participation in domestic refining, amid renewed policy debates over fuel importation, regulatory oversight and market sustainability following leadership changes at key petroleum regulatory agencies.
Speaking in Abuja, IPMAN National President, Abubakar Shettima, said the association’s strategy aligns with broader national objectives of reducing fuel imports, conserving foreign exchange and stabilising petrol supply through local production.
According to Shettima, Nigeria can no longer afford to rely on imported petroleum products when domestic refining capacity is expanding, particularly with the operational rollout of the 650,000 barrels-per-day Dangote Refinery.
He stressed that independent marketers, who control a significant share of the retail fuel market, must be positioned not only as distributors but as investors in refining infrastructure.
IPMAN Refinery Ownership Plan and Downstream Reforms
The proposal for IPMAN refinery ownership represents a fundamental departure from the traditional role of independent marketers, who have historically depended on imported fuel or allocations from government-regulated supply chains.
Shettima said IPMAN intends to pursue refinery ownership strictly within regulatory frameworks, adding that enabling policies from the Nigerian Midstream and Downstream Petroleum Regulatory Authority would be critical to unlocking private-sector investment in refining.
He argued that allowing independent marketers to own or co-own refineries would deepen value creation in the downstream sector, reduce supply bottlenecks and create thousands of jobs across the fuel value chain.
“Independent marketers are ready to invest in refining if the policies are right. Nigeria should not continue importing products that can be refined locally,” Shettima said, urging the new regulatory leadership to place national interest at the centre of decision-making.
Industry observers say the IPMAN refinery ownership ambition could accelerate Nigeria’s transition from a fuel-import dependent economy to a self-sufficient refining hub, provided regulatory clarity and fair market access are guaranteed.
Dangote Refinery Partnership to Stabilise Fuel Supply
As part of its strategy, IPMAN has directed members nationwide to prioritise the purchase of Premium Motor Spirit from the Dangote Petroleum Refinery, describing the partnership as critical to stabilising fuel availability and lowering pump prices.
Shettima disclosed that from January 2026, the Dangote Refinery would begin direct PMS supply to registered IPMAN members, including free delivery to filling stations across the country.
He said the development would significantly reduce logistics costs, eliminate middlemen and further push down retail prices for consumers.
“It is no longer news that IPMAN controls over 80 per cent of the PMS retail market. With this arrangement, there will be no scarcity of petrol in Nigeria,” he said.
Analysts believe the Dangote-IPMAN supply framework could reduce market volatility, particularly during peak demand periods, while strengthening competition within the downstream sector.
Fuel Importation Criticised as Economic Drain
Reiterating IPMAN’s long-held position, Shettima warned that continued fuel importation remains detrimental to Nigeria’s economy, especially when domestic refining capacity is expanding.
He said issuing import licences alongside local production distorts market dynamics, drains foreign exchange, discourages investment and undermines job creation.
“Continuous importation is not an acceptable parallel business model,” he said, arguing that Nigeria must fully commit to domestic refining if it hopes to achieve long-term energy security.
Nigeria has spent billions of dollars annually on fuel imports due to the collapse of state-owned refineries, a situation that has exposed the economy to global oil price shocks and exchange-rate volatility.
The operationalisation of the Dangote Refinery has reignited debates over market dominance, regulatory fairness and the future of fuel imports, particularly as smaller players seek clarity on access and pricing.
Expectations From New Petroleum Regulators
The IPMAN president welcomed the recent leadership changes at the NMDPRA and the Nigerian Upstream Petroleum Regulatory Commission, describing them as an opportunity to restore investor confidence in the oil and gas sector.
He urged the new regulatory heads to prioritise policies that promote local refining, protect fair competition and eliminate structural bottlenecks that have historically constrained independent marketers.
Shettima also called attention to outstanding bridging claims owed to IPMAN members, estimated at over ₦190bn, urging the NMDPRA to address the issue urgently.
“These debts have lingered for too long and continue to strain the operations of our members,” he said, adding that resolving the claims would improve liquidity and strengthen downstream stability.
Broader Impact on Nigeria’s Energy Transition
Energy experts say the growing push for IPMAN refinery ownership reflects a broader shift within Nigeria’s petroleum sector towards private-sector-led solutions, following decades of state dominance and inefficiencies.
By integrating refining, distribution and retail operations, independent marketers could play a more strategic role in Nigeria’s energy transition, particularly as policymakers seek to balance fuel affordability with market sustainability.
However, analysts caution that success will depend on transparent regulation, open access to infrastructure and safeguards against monopolistic practices.
As Nigeria navigates complex reforms under the Petroleum Industry Act, stakeholders agree that collaboration between regulators, refiners and marketers will be crucial to ensuring energy security and economic resilience.
For IPMAN, the message is clear: the future of Nigeria’s downstream sector lies in local refining, private investment and policies that reward production over importation.
