IPMAN Encourages Members to Secure Stakes in Dangote Refinery IPO

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has issued a directive to its members across the nation, advising them to participate in the forthcoming Initial Public Offering (IPO) of Dangote Petroleum Refinery. The association emphasized that acquiring shares in the refinery would enable independent petroleum marketers to transition from merely purchasing refined products to becoming equity holders in one of Nigeria's most significant refining assets.

Abubakar Shettima, the National President of IPMAN, conveyed this message in a statement released on Thursday. He also extended congratulations to the management and board of Dangote Petroleum Refinery and Petrochemicals regarding the impending public share sale. Shettima urged members to seize this offering, characterizing it as a unique opportunity to gain ownership in the refinery.

"The National President of IPMAN therefore calls on her members nationwide to aggressively capitalise on this share sale, as it is a rare, strategic opportunity to evolve from off-takers of petroleum products into equity owners of the primary production infrastructure," Shettima stated. He further added that "This investment will similarly strengthen our collective capacity to guarantee affordable, steady, unhindered fuel distribution across all 36 states, and ensure price stability at our pumps."

Furthermore, IPMAN appealed to the Dangote Refinery to broaden its direct allocation of Premium Motor Spirit (PMS) to encompass all registered independent petroleum marketers. The association argued that limiting direct supplies to only a select group of marketers could foster distribution bottlenecks and escalate logistical expenses. Shettima stressed the importance of the refinery extending its direct allocation system to every registered independent marketer, rather than restricting access to a few chosen distributors. This, he noted, is vital for "eliminating anti-competitive bottlenecks, suppressing exorbitant logistical middlemen fees, and ensuring that affordable, locally refined fuel reaches every citizen."

The association also implored the Federal Government to halt the continuous importation of petrol. IPMAN contended that a greater reliance on domestically refined products would alleviate pressure on the country's foreign exchange reserves and simultaneously reduce distribution costs nationwide. The Dangote Refinery boasts a substantial nameplate capacity of 650,000 barrels per day, positioning it as one of the largest single-train refineries globally.