Yakubu Suleiman: Dangote must directly engage industry stakeholders, offer fair prices to make fuel affordable for Nigerians

The National Assistant Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Yakubu Suleiman, has expressed concern over the lack of cooperation between the Dangote Refinery and key industry stakeholders.

Speaking in an interview with ARISE NEWS on Friday, Suleiman stressed IPMAN’s interest in sourcing fuel from its recently commissioned Dangote facility, but expressed reservations over prices and lack of direct engagement with marketers.

Suleiman stressed IPMAN’s commitment to working with Dangote, but expressed concern over a perceived lack of engagement with key stakeholders.

“Like every Nigerian, IPMAN is happy for Dangote and its refinery, which is of strategic importance to the country,” Suleiman said. “IPMAN, as an industry stakeholder, is very happy to work with Dangote and buy products from him, but the conditions must be right. Examples include the price at which it is unloaded and the ease of loading.”

Suleiman highlighted the apparent contradiction in Dangote’s approach to engaging key industry stakeholders. “Dangote must change his interaction model. It doesn’t seem to engage real stakeholders such as marketers and regulators; instead, he uses the political class and public opinion to gain sympathy. As a businessman, this surprises me,” he said.

According to Suleiman, IPMAN, along with other associations such as the Major Petroleum Traders Association of Nigeria (MOMAN) and the Docks and Petroleum Products Traders Association of Nigeria (DAPMAN), should have been invited for discussions.

“As IPMAN, Dangote should have invited us to participate – not only IPMAN but all stakeholders including MOMAN and DAPMAN. Unfortunately, there was no interaction until this moment,” he explained.

“Only IPMAN tried to contact him. We went to Dangote about three to four times, trying to meet to discuss the synergies between IPMAN and Dangote, but to no avail. Most of the time he tells us he will get back to us.”

Suleiman expressed disappointment that the refinery announced its intention to begin selling fuel directly to marketers without formally involving IPMAN.

“It’s amazing that at the press conference we heard him say that he was encouraging members to come and load up the groceries. IPMAN doesn’t do this. As an organization, we try to regulate and advise our members on which warehouse they should go to for loading products,” he said.

Price transparency and competition were major concerns, especially in a deregulated market. “We don’t know the prices, and remember we live in a deregulated economy. We cannot allow someone to monopolize the system – this is not what deregulation is supposed to be,” Suleiman said.

He stressed that Dangote must set daily prices and work with stakeholders: “Prices are regulated by international standards. He must announce the sale price every day, but he cannot do this without involving interested parties.”

Stressing the importance of competitive prices, Suleiman said: “If there is a product in Dangote that sells for N1,000, suppose there is another place that sells for N900, we cannot simply say for the sake of our relationship with Dangote that we will instruct our participants buy there. We need to go where the price is lower, where we will make a profit.”

Suleiman noted that fuel prices in Dangote are relatively high compared to other suppliers. “As of last week, prices in Dangote were higher than other places.

“Oil prices are falling internationally, but Dangote’s rate was N995 per liter and you will have to arrange the loading and unloading of the cargo yourself. Considering the additional cost of transportation and warehousing fees, how can we sell it at the final point of sale?” he asked.

“We must feel sorry for Nigerians. IPMAN is trying its best to support the country, especially during this difficult time when people are suffering. We want to find cheaper products and sell them at prices that people can afford.”

Lack of participation has financial implications for IPMAN members, who often incur high operating costs, including transportation and warehousing costs.

“When we buy at higher prices, we are forced to sell at higher prices, which people don’t expect and they start blaming IPMAN,” Suleiman noted.

“If people understood the dynamics, they would appreciate IPMAN because independent oil marketers are truly patriotic to Nigerians.”

IPMAN also called on Dangote to organize a formal stakeholder meeting with IPMAN, MOMAN and DAPMAN. “We ask Dangote to convene a stakeholder meeting. Let him interact with IPMAN, MOMAN and DAPMAN so that we can sit down and serve Nigerians,” Suleiman urged.

“He can’t run a business in isolation – he needs people, especially IPMAN, as we are the biggest buyers in this industry.”

Suleiman concluded by recalling IPMAN’s support for the refinery and its contribution to Nigeria’s energy independence. “As IPMAN and as Nigerians, we are very happy to have Dangote in Nigeria, especially such a large refinery. This is a great achievement and, as we have said before, we support this development 100%.”

However, Suleiman stressed that IPMAN will continue to prioritize cost-effective procurement for the benefit of Nigerians. “We don’t import; we buy products from various warehouses where prices are cheaper and then advise our members on which warehouse is best for procurement and distribution at government-approved prices,” he said.

Suleiman explained that warehouse prices have been high recently. “The last wholesale price from the warehouse was N1,025, not directly to IPMAN or the retail outlets, but to the warehouse owners who have to cover the transportation and other costs to get the product to their warehouses. So, by the time it reaches their warehouses, it will already be worth N1,025,” he explained.

“If Dangote sold directly to IPMAN at a fair price, fuel costs in Nigeria would have already come down. We would go straight to his refinery, pay 995 or 900 naira and transport it straight to our filling stations. I challenge you, if Dangote had done this, you would have seen prices drop at our trading stations within days,” he said.

Boluwatife Enome

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