The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has announced that its members are restricted to purchasing Premium Motor Spirit (PMS) popularly referred to as fuel or petrol exclusively from the Dangote Petroleum Refinery, as the refineries operated by the Nigerian National Petroleum Company Limited (NNPCL) are unable to produce petrol efficiently, instead generating naphtha.
Naijaonpoint reports that DAPPMAN’s Executive Secretary, Olufemi Adewole, confirmed this during a conversation with journalists on Sunday, May 18, 2025.
He told The PUNCH that DAPPMAN members are prepared to source petroleum products from the Dangote refinery, which is currently the only effective petrol-producing facility in the nation.
As a result, Adewole emphasised that the marketers will only consider importing the product if local procurement proves impossible.
He also noted that the Dangote refinery is not prepared to supply premium motor spirit to members seeking to purchase in bulk.
Adewole further explained that his members will not approach the Port Harcourt or Warri refineries for petrol, as these facilities are producing naphtha and are not capable of adequately producing the essential petrol.
“The NNPC refineries, both the revamped Port Harcourt and Warri, are not yet optimally producing PMS; they are producing naphtha.
“Our members will not go to them for now.
“But where we can get the product is Dangote refinery and we are willing to work with Dangote refinery, we are willing to buy from Dangote refinery, but if we don’t get the product from Dangote refinery, the PIA allows us to import which is what we’ll go for,” Adewole said.
He asserted that domestic production of PMS should be increased to provide marketers with additional sources for acquiring the product.
He emphasised that the depot owners do not primarily wish to import, as they prefer to purchase locally and sell to Nigerians; however, the available opportunities are constrained.
“In-country production should be ramped up because we need to have more sources of getting the product. 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,” he stated.
He contended that the Dangote refinery adopts a selective strategy by engaging with a limited number of marketers, emphasising its preference for gantry supply.
Adewole, representing the depot owners, stated that the association favours bulk purchases of up to 25 metric tonnes.
He highlighted that if the portal were accessible and members could load their vessels, it would facilitate their patronage of the Dangote refinery.
“Dangote refinery, in this context, 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. So, if the portal is open and we are allowed to load our vessels, then it’s a lot easier for us,” he posited.
Adewole stated that his members possess depots throughout Nigeria and are prepared to acquire PMS and diesel from the Dangote refinery, although he expressed uncertainty regarding the refinery’s readiness to supply them.
He mentioned that discussions with Dangote are still in progress, but the members are seeking the most favourable pricing without being disadvantaged.
“We have depots all over the country, spread all over the coastal areas. So, all these depots are ready and willing to pick from Dangote. But is Dangote ready and willing? We’ve had several meetings with Dangote Refinery at the highest level of their management. We’re still talking with them. So, it’s not yet closed, but we want a situation in which we can pick from the refinery at the best possible price without being shortchanged,” he explained.
Adewole spoke further that the aim of DAPPMAN is to ensure it gives customers in all parts of the country quality products at the best price, no matter where the product legitimately comes from.
“Wherever we can source the product, we will get it for them. The PIA allows us to import, and when people ask, ’Why are you importing? Why are you not patronising the local refinery?’ The reality is that we want to patronise the local refinery, but is the local refinery willing to give us the product? If we import cargos at a cheaper rate, we will sell to Nigerians at a cheaper rate,” he stated.
Adewole added that it is DAPPMAN’s pride that the Dangote refinery is up and running, saying the association wants to work with the refinery without losing money.
“It’s our pride that the Dangote refinery is up and running. We want to work with Dangote, but we are also not going to keep losing money because the bottom line is that we are in business,” he submitted.
In November 2024, the Nigerian National Petroleum Corporation (NNPC) announced that the Port Harcourt refinery, with a capacity of 60,000 barrels per day, had resumed operations after being inactive for several years.
The NNPC reported that the refurbished facility is now functioning at 70 per cent of its total refining capacity, utilising modern equipment.
The primary outputs from the refinery are expected to be diesel and Pour Fuel Oil, with daily production capacities of 1.5 million litres and 2.1 million litres, respectively.
Additionally, the refinery will produce 1.4 million litres of Straight-Run Gasoline (Naphtha) blended into Premium Motor Spirit, along with 900,000 litres of kerosene and 2.1 million litres of low-pour fuel oil. It was also mentioned that approximately 200 trucks of petrol would be distributed to the Nigerian market each day.
NNPC spokesperson Olufemi Soneye addressed allegations from various sources claiming that the Port Harcourt refinery was not generating fuel but was instead blending through Indorama Petrochemicals.
“We are, however, aware of unfounded claims by certain individuals suggesting that the refinery is not producing products. For clarity, the Old Port Harcourt Refinery is currently operating at 70 per cent of its installed capacity, with plans to ramp up to 90 per cent.
“The refinery is producing the following daily outputs: Straight-Run Gasoline (Naphtha): Blended into 1.4 million litres of Premium Motor Spirit (PMS or petrol); Kerosene: 900,000 litres; Automotive Gas Oil (AGO or Diesel): 1.5 million litres; Low Pour Fuel Oil (LPFO): 2.1 million litres; Liquefied Petroleum Gas (LPG): Additional volumes
“It is worth noting that the refinery incorporates crack C5, a blending component from our sister company, Indorama Petrochemicals (formerly Eleme Petrochemicals), to produce gasoline that meets required specifications. Blending is a standard practice in refineries globally, as no single unit can produce gasoline that fully complies with any country’s standards without such processes,” Soneye disclosed in November.
He stated that the NNPC has made significant advancements regarding the new Port Harcourt Refinery, which he indicated would commence operations ‘shortly’ without any prior announcements.
In April, a report from the Nigerian Midstream and Downstream Petroleum Regulatory Authority revealed that the Port Harcourt refinery has been functioning at less than 40 per cent capacity.
Additionally, it was noted that the Warri Refining and Petrochemical Company has been inactive since January 25, 2025, due to safety concerns related to its Crude Distillation Unit Main Heater.
Reports indicated that the new board of the NNPC has dismissed the three Managing Directors of the Port Harcourt, Warri, and Kaduna refineries.
However, according to The PUNCH, Soneye has not yet responded to inquiries from journalists regarding this matter.