The national leadership of the Independent Petroleum Marketers Association of Nigeria, IPMAN, on Sunday, distanced itself from the strike announced by its Western Zone, which is protesting against Dangote Industries Limited’s decision to deploy its own trucks for fuel distribution.
The division within IPMAN occurs at a time when the downstream oil sector is undergoing considerable transition following the Dangote Refinery’s commissioning.
The $20 billion plant in Lagos is Africa’s largest oil refinery. It is projected to cover Nigeria’s domestic fuel demands, potentially replacing the country’s decades-long reliance on imported petroleum products.
On Sunday, IPMAN National Ex-Officio Douglas Iyike issued a statement on behalf of the National Executive Council urging members nationwide to defy the strike direction and continue with normal operations.
Iyike noted that Dangote’s plan to carry products using its own trucks is consistent with the Petroleum Industry Act and that it will reduce the financial strain on marketers who face several charges from petroleum tanker drivers.
He said, “I am refuting this story as the former chairman of IPMAN Benin Depot and presently the National Ex-Officio of IPMAN. The IPMAN National Executive Council, under the leadership of Alhaji Maigandi Shittima, is not aware of such preconceived action by the IPMAN Western Zone to make such a pronouncement of going on strike by Monday.
“As you would know, the PIA has given room for any individual to own a refinery in the country. That person can also own trucks, distribute the products, and build petrol stations to dispense them. Dangote has done no harm but good to the marketers and the general public.
“I want to state clearly that the IPMAN Western Zone has no impetus to call for any strike, as it lacks the constitutional powers to do so. It is only the NEC of IPMAN that has the right to take such a decision, not any zone or depot.”
Iyike reemphasized that the Dangote Refinery would benefit marketers by allowing them to obtain products on credit and pay after sales, which would boost business growth.
“IPMAN nationwide is solidly behind Dangote Refinery, and we will not allow a few individuals to truncate this development in the downstream sector. The level of enormous levies on marketers before getting their products to their outlets will soon be a thing of the past,” he added.
The Western Zone of IPMAN had contended that Dangote’s choice to transport refined products with its own trucks violated the spirit of the PIA and could jeopardize petroleum tanker drivers.
However, the NEC maintains that the move is entirely legal under the PIA, which permits private companies to refine, distribute, and retail petroleum products.
The refinery’s direct-to-market concept might minimize distribution costs, lower pump prices, and limit supply disruptions caused by union strikes.
IPMAN’s assistance for Dangote represents a partnership between marketers and refineries aimed at stabilizing fuel supply chains and increasing profitability for independent filling stations.
