KEY POINTS
- Nigeria’s fuel shortages are expected to ease soon as disruptions from government sourcing changes impact supply chains, says IPMAN’s Ukadike Chinedu.
- Dangote Group is addressing supply issues by dispatching 300 fuel trucks and implementing coastal vessel deliveries to reduce transport costs and traffic.
- Independent marketers are finalizing direct purchase arrangements with Dangote, supported by a new online platform to streamline fuel distribution.
In a promising development for Nigeria’s fuel supply, Mr. Ukadike Chinedu, Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), announced that the recent fuel shortages are likely to be resolved within weeks.
In an interview with the News Agency of Nigeria, Chinedu attributed the ongoing scarcity to disruptions in the fuel supply chain, primarily stemming from the government’s recent shift in sourcing strategies. “The supply chain heavily relies on imported petroleum products, but the Federal Government has now directed marketers to source directly from Dangote’s local refineries,” he explained.
Dangote’s role in mitigating supply issues
Chinedu noted that as Dangote Group begins to stabilize fuel and crude product supplies, initial logistical and documentation adjustments have resulted in temporary delays. However, these issues are expected to resolve soon.
To enhance distribution efficiency, Dangote has dispatched 300 fuel trucks to supplement supplies from the Nigerian National Petroleum Corporation Limited (NNPCL). Additionally, plans are underway to utilize coastal vessels for fuel deliveries, which is expected to decrease reliance on road transport—this strategy aims to alleviate road traffic, reduce accident rates, and lower overall transportation costs.
“This arrangement will lessen the wear on our roads and cut down on long-distance trucking, which ultimately benefits consumers with reduced prices,” Chinedu said. He emphasized that resolving these logistical adjustments would restore normal supply in the coming weeks.
Independent marketers seeking direct access to fuel
Further developments indicate that independent marketers are in the process of finalizing arrangements with Dangote to enable direct fuel purchases, thereby diminishing the influence of middlemen in the distribution chain. “IPMAN will no longer depend on competitors for its products,” Chinedu asserted.
To enhance operational efficiency, IPMAN has launched a new website, Ipman.ng.com, which will enable marketers to purchase fuel through an online portal. This initiative aims to position IPMAN at the forefront of the petroleum distribution sector.
Financial support from regulatory authorities
In a related development, according to vanguard, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has committed to disbursing N10 billion to marketers as part of outstanding claims from the Petroleum Equalisation Fund (PEF).
Chinedu expressed confidence in the NMDPRA’s commitment to facilitating a bulk purchase agreement with Dangote. “Once discussions are concluded, the product will be available nationwide,” he concluded, signaling a hopeful end to the fuel scarcity crisis.
