DAPPMAN Endorses Dangote Refinery Amid NNPC Petrol Production Shortfalls

As Nigeria continues to grapple with fuel supply challenges, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has confirmed that its members currently depend solely on the Dangote Petroleum Refinery for Premium Motor Spirit (PMS).

This development comes amid reports that the Nigerian National Petroleum Company Limited (NNPC) refineries, including Port Harcourt and Warri, are producing mostly naphtha rather than petrol.

Olufemi Adewole, DAPPMAN’s Executive Secretary, explained in a recent interview, “The NNPC refineries… are not yet optimally producing PMS; they are producing naphtha. Our members will not go to them for now.”

Adewole highlighted the willingness of marketers to collaborate with Dangote refinery but noted the refinery’s selective sales approach. “Dangote refinery… prefers a selective approach that chooses a few marketers and deals through them, and it prefers the gantry supply. But we are depot owners. We pick in bulk. We are picking 15 – 25 metric tonnes.”

He stressed that importation remains a fallback option only when local supply is insufficient. “If we don’t get the product from Dangote refinery, the PIA allows us to import which is what we’ll go for,” he said.

DAPPMAN advocates for increased domestic production capacity to reduce import dependency. “It is not the primary will of the depot owners to import; we would rather buy locally and sell to Nigerians, but the opportunities are limited,” Adewole added.

The association is actively negotiating with Dangote refinery management to secure competitive pricing and reliable supply. “We want a situation in which we can pick from the refinery at the best possible price without being shortchanged,” he noted.

NNPC’s Port Harcourt refinery, which resumed operation in November 2024 at 70% capacity, primarily produces diesel and fuel oil, with petrol output blended from naphtha supplied by Indorama Petrochemicals. Despite these efforts, reports indicate the refinery’s capacity utilization has dropped below 40%, and the Warri refinery remains closed due to safety concerns.