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N1.77trn Imported Fuel Stranded as Dangote Floods Market, IPMAN Rejects Imports

FUEL

Importers of Premium Motor Spirit (PMS) face a major crisis with over 2.39 billion litres valued at N1.77 trillion stuck at depots, as independent marketers increasingly push for locally refined products from Dangote Refinery.

N1.77trn Imported Fuel Stranded as Dangote Floods Market, IPMAN Rejects Imports

New Telegraph findings show 828,000 litres arrived in October and 1.57 billion litres in November to compete with local prices, but Dangote ramped up output to 600 million litres in October, 900 million in November, and 1.5 billion in December, dropping ex-depot prices to N699 per litre against N840 landing costs.

Since December 16, Dangote has loaded 31-48 million litres daily from its gantry to meet demand. Independent Petroleum Marketers Association of Nigeria (IPMAN) President Abubakar Maigandi Shettima opposes continued imports, stating the refinery can meet national PMS needs.

“Since supply began, marketers have consistently lifted products without complaints. We oppose importation because Dangote has capacity for the country’s entire demand,” Shettima said, praising direct delivery commitments that stabilise distribution for consumers.

Improved local access has eased supply pressures and boosted marketer confidence, with IPMAN backing domestic refining for the downstream sector. Central Bank of Nigeria Balance of Payments data shows petroleum import spending plunged 54 per cent from $14.58 billion in 2023’s first nine months to $6.71 billion in 2025’s equivalent period.

The decline continued from $11.38 billion (Jan-Sep 2024), reflecting a 21.9 per cent drop year-on-year then 41 per cent further reduction, underscoring Dangote’s impact on Nigeria’s fuel import reliance.

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Frank
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Franklin Ugo Ndibe is a seasoned Nigerian journalist and media professional renowned for his incisive reporting and editorial leadership in the information and communications technology (ICT) sector.

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