Petrol stations across the South West may go dark from Monday as the Independent Petroleum Marketers Association of Nigeria (IPMAN), Western Zone, has vowed to shut operations in protest of what it calls an attempt to “monopolise” the downstream petroleum sector.
The decision, reached at a zonal council meeting on Saturday, comes just as Dangote Petroleum Refinery rolls out a sweeping plan to take direct control of petrol, diesel, and aviation fuel distribution nationwide.
EDITOR’S PICKS
Why IPMAN Is Upset
Chief Oyewole Akanni, chairman of IPMAN Western Zone, told the News Agency of Nigeria (NAN) that the move threatens the survival of thousands of independent marketers and could push them out of business entirely.
“The planned entry of Dangote Refinery and MRS Energy into petrol distribution poses a serious threat to the survival of IPMAN members’ businesses,” Akanni said.
He noted that IPMAN members collectively operate more than 4,000 trucks and warned that many drivers, motor boys, and depot staff risk losing their jobs. According to him, thousands of members’ investments could be wiped out if the new system bypasses independent filling stations.
Akanni also argued that Dangote’s strategy violates the Petroleum Industry Act (PIA), which bars refiners from directly distributing their products. He described the plan as a “flagrant breach of the law” and stressed that the strike action was a collective decision, with all depot chairmen and council members expected to enforce compliance.
What Dangote Has Planned
Dangote Petroleum Refinery has signalled its intention to eliminate middlemen in fuel distribution. Its nationwide rollout is designed to deliver products directly to filling stations, industrial plants, and large-volume consumers.
As part of this strategy, Dangote has invested N720 billion in logistics and recently received 4,000 brand-new Compressed Natural Gas (CNG) trucks. The company says the initiative will absorb more than N1.07 trillion in annual distribution costs and save Nigerians over N1.7 trillion each year in energy expenses.
The company also promises significant job creation — over 15,000 positions across the logistics value chain — and claims its initiative will revive dormant filling stations and benefit over 42 million micro, small, and medium enterprises (MSMEs).
What This Means for Consumers
For ordinary Nigerians, IPMAN’s strike could lead to fuel scarcity, longer queues at the pump, and potential price hikes, especially if independent marketers follow through and shut their stations from Monday.
Ironically, Dangote’s plan is meant to lower costs, improve product availability, and reduce logistical bottlenecks. But until the distribution system fully stabilizes, the transition could be rocky.
The fear among marketers is that Dangote’s direct-to-station model will sideline them, leaving a single corporate entity with near-total control over supply and pricing, a prospect they argue could hurt competition in the long run.
The Bigger Picture
The standoff highlights a growing tension between Nigeria’s push to reform its energy sector and the survival of long-standing players in the downstream market. While Dangote’s $20 billion refinery was hailed as a solution to Nigeria’s import dependence and fuel supply crises, its next moves are testing the balance between efficiency and market fairness.
FURTHER READING
For now, motorists may want to fill their tanks before Monday, just in case IPMAN’s strike turns into another round of scarcity.
Philip Ibitoye is a Special Correspondent with EKO HOT BLOG. Click here to find daily analysis and critical insight on trending issues in Lagos and other parts of Nigeria.
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