KEY POINTS
- Dangote Refinery partnered with fuel marketers to ensure nationwide supply and reduce single-source dependency risks.
- MEMAN says the arrangement improves efficiency, diversifies distribution, and aligns with regulatory expectations.
- Ongoing Middle East tensions highlight the need for flexible and resilient fuel supply systems in Nigeria.
The Dangote Petroleum Refinery has partnered with major fuel marketers to ensure steady nationwide supply and reduce the risks associated with relying on a single source for petroleum products.
The Major Energies Marketers Association of Nigeria disclosed this during a webinar on Tuesday, highlighting that the arrangement is aimed at strengthening the downstream sector through improved efficiency and broader distribution channels.
Balancing Opportunity with Risk in a Mega Refinery System
Speaking at the session, MEMAN Chairman, Hubb Stokman, noted that Nigeria is fortunate to have a refinery capable of meeting a significant portion if not all of its domestic fuel needs.
He explained that the refinery represents a major advantage, especially amid global supply uncertainties, such as ongoing tensions in the Middle East. However, he cautioned that heavy reliance on a single, large facility introduces concentration risk, which could disrupt supply if not properly managed.
Stokman emphasised that the partnership with marketers was intentionally designed to decentralise supply and ensure operational efficiency. By distributing products through multiple marketers, the system becomes more resilient and less vulnerable to disruptions tied to a single supply point.
He added that the arrangement was developed in consultation with regulators to align with market realities and enhance overall distribution effectiveness across the country.
The MEMAN chairman further pointed out that recent instability in the global oil market, triggered by geopolitical tensions in the Middle East, has reinforced the importance of flexible and diversified supply systems.
According to him, the crisis emerged shortly after the supply agreement was announced, highlighting the timeliness and necessity of the initiative.
