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Marketers fault Dangote’s 500,000-litre fuel delivery threshold

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The Dangote Petroleum Refinery has introduced a minimum purchase requirement of 500,000 litres of petrol for oil marketers wishing to benefit from its free delivery scheme, sparking debates across Nigeria’s downstream petroleum sector.

The refinery confirmed the new condition this week, stating that only marketers who buy half a million litres or more qualify for no-cost transportation of products. At the refinery’s gantry price of N820 per litre, this translates to a minimum outlay of about N410 million, equivalent to at least 11 trucks of 45,000 litres each.

A senior refinery official, who asked not to be named, explained, “Yes, the Minimum Order Quantity for the free delivery is 500,000 litres.”

The requirement has raised concerns among independent petroleum marketers, who argue that the benchmark is too high for most operators to meet. The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, confirmed that members were struggling with the threshold.

“Yes, it is true. We have to buy a minimum of 500,000 litres. That requirement has not been easy to follow,” he said. Ukadike explained that the association was compiling a list of members who could pool resources to meet the refinery’s benchmark.

According to him, without such collaboration, the free delivery scheme could be hijacked by middlemen, leading to profiteering and bureaucracy in the fuel supply chain.

“The current situation would bring back middlemen. We usually just buy one truck before, but now we have to buy 11 trucks. That is why we are encouraging members to group themselves to access products directly from Dangote,” Ukadike stressed.

See also  Cooking gas nears N2,000/kg ahead of Sallah celebrations

Energy analyst Olatide Jeremiah, Chief Executive Officer of Petroleumprice.ng, criticised the requirement, describing it as unrealistic for the majority of retail station owners. “At ₦820 per litre, marketers must raise over ₦400m to qualify. How many operators can afford that? Many will have no choice but to rely on wholesalers,” Jeremiah said.

He argued that the policy could inadvertently strengthen middlemen, undermining the refinery’s goal of reducing costs and providing direct delivery to retailers. “The only way to eliminate middlemen is to allow marketers to load and pay per truck. Requiring 11 trucks per order risks keeping depot operators and wholesalers in business, which is exactly what Dangote wants to avoid,” he warned.

Earlier this month, the Dangote Refinery unveiled a free delivery initiative, backed by 1,000 compressed natural gas-powered trucks, aimed at cutting supply chain costs and ensuring cheaper pump prices for Nigerians.

The refinery, which boasts a capacity of 650,000 barrels per day, is Africa’s largest and began commercial operations last year. Its entry into the market has been hailed as a potential game-changer for Nigeria’s energy landscape, with expectations of improved domestic fuel supply and reduced dependence on imports.

Several major marketers, including Conoil Plc, Eterna Plc, Golden Super, Nepal Energies, Kifayat Global Energy, and Riquest & Gas, have already partnered with the refinery to benefit from the free logistics scheme.

However, the scheme has triggered strong opposition from tanker owners and fuel distributors. The President of the National Association of Road Transport Owners, Yusuf Othman, criticised the initiative, arguing that it undermines existing agreements between his members and fuel buyers.

See also  NNPC subsidiaries’ debt balloons 70% to N30tn

“NARTO members own over 30,000 trucks, and we cannot do fuel distribution free of charge. Many of our members took bank facilities to buy trucks based on signed contracts. If Dangote delivers fuel directly for free, those agreements collapse,” Othman lamented.

He also cited provisions of the Petroleum Industry Act (PIA), arguing that the refinery’s direct free delivery violates regulatory guidelines.

Stakeholders now fear that instead of reducing costs, the new threshold could distort the market, leaving small operators sidelined while wholesalers reassert control.

Analysts warn that depot operators and middlemen, who typically thrive on bulk purchases, may continue to dominate distribution. Smaller filling station owners, lacking the resources to buy 11 trucks at once, may find themselves dependent on intermediaries once again.

Jeremiah reinforced this concern, noting that middlemen could easily resell products with additional margins, undermining the refinery’s effort to lower pump prices.

“If nothing changes, the refinery is only encouraging middleman activities, and depot operations will remain viable. That would defeat the original purpose of the free delivery programme,” he said.

While the Dangote Refinery’s initiative was designed to cut costs and reduce pump prices, the implementation has exposed structural weaknesses in Nigeria’s downstream sector.

IPMAN is pushing for collective purchasing to help smaller operators participate, while experts recommend revising the policy to allow per-truck loading. Industry watchers argue that without adjustments, the refinery risks alienating the very marketers it needs to ensure broad distribution nationwide.

For now, the free delivery programme remains under scrutiny, with stakeholders awaiting possible revisions. The debate highlights the delicate balance between economies of scale for the refinery and inclusivity for independent marketers in Nigeria’s evolving fuel supply chain.

See also  On food price crash, farmers fault FG’s order as agro-imports hit N2.2tn

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Nigeria, Indonesia trade tops $3bn annually — envoy reveals

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Nigeria and Indonesia’s bilateral trade has consistently exceeded $3bn annually, the Indonesian Ambassador to Nigeria, Bambang Suharto, has said.

The ambassador said the trade relationship had positioned Nigeria as one of Indonesia’s foremost trading partners in Africa, while calling for greater economic cooperation between both countries.

“Our bilateral trade has consistently surpassed USD 3 billion annually, cementing Nigeria’s position as one of Indonesia’s foremost trading partners in Africa,” he said.

Suharto said Nigeria supplied an essential source of energy contributing to Indonesia’s energy security.

“Nigeria supplies the essential source of energy that contributes to Indonesia’s energy security, while Indonesian products have become household staples for Nigerian consumers and businesses,” Suharto said.

He said some Indonesian products had also become established in Nigeria through local production and Nigerian workers, describing the development as evidence of the value of economic partnerships beyond the exchange of goods.

He added, “Yet, there remains considerable room to grow. Together, Indonesia and Nigeria represent a vibrant market of more than 550 million people, defined by young populations, dynamic businesses, and substantial natural and human resources.”

According to him, the combined economic potential provided a foundation for expanding trade, investment, technological exchange and employment opportunities.

Suharto said Indonesian companies operating in Nigeria were contributing to the bilateral relationship through investment, job creation and corporate social responsibility initiatives.

“Our ultimate ambition is not simply to trade more, but to cultivate a resilient partnership in which businesses on both sides thrive, local industries develop, and our people directly reap the benefits of the opportunities we create together,” he said.

He said Indonesia also attached importance to educational and cultural exchanges with Nigeria, noting that its scholarship programmes had enabled Nigerian students to study in Indonesia and establish lasting relationships.

See also  CBN blacklists top loan defaulters

In his remarks, the Permanent Secretary, Ministry of Foreign Affairs, Ambassador Dunoma Umar Ahmed, said Nigeria and Indonesia had considerable scope to deepen their economic partnership.

Ahmed said Nigeria was particularly interested in Indonesia’s experience in industrialisation, manufacturing, digital transformation, infrastructure development, agriculture, maritime development and the expansion of small and medium-sized enterprises.

“Nigeria is particularly interested in expanding cooperation that can support the development of local productive capacity, strengthen value chains, promote technology transfer, and attract sustainable investment,” he said.

The permanent secretary urged greater interaction between the private sectors, chambers of commerce, financial institutions and business communities of both countries.

He identified agriculture and agro-processing, manufacturing, energy, infrastructure, pharmaceuticals, the digital economy and creative industries as areas with significant potential for increased trade and investment.

Ahmed also called for efforts to address practical constraints to bilateral commerce, including market access, business information connectivity and the facilitation of contracts between businesses in both countries.

“Nigeria is particularly interested in expanding cooperation that can support the development of local productive capacity, strengthen value chains, promote technology transfer, and attract sustainable investment.

“Our two countries should therefore continue to encourage greater interaction between our private sectors, chambers of commerce, financial institutions, and business communities. There is significant potential for increased trade and investment in areas including agriculture and agro-processing, manufacturing, energy, infrastructure, pharmaceuticals, the digital economy, and the creative industries,” Dunoma said.

Source: punchng.com

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Airlines face disruptions as fuel costs soar

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Recent disruptions that stranded passengers, particularly in Abuja, have been linked to debts airline operators owe fuel marketers, even as operators lament the rising cost of Jet A1 aviation fuel.

Passengers who bought Air Peace tickets last Friday spent the night at the Abuja airport following flight cancellations and delays.

The PUNCH learnt that on Friday alone, Lagos, Maiduguri and Asaba-bound passengers remained at the Nnamdi Azikiwe International Airport as the airline delayed boarding for several hours and cancelled a number of flights.

Passengers who spoke with our correspondent claimed that the airline had failed to provide reasons for the disruptions.

Our correspondent gathered that Lagos-bound passengers scheduled to take off from Abuja at about 4:00 pm, as well as another set scheduled to depart earlier, remained at the airport until late that night.

While Lagos-bound passengers left the same night, Asaba- and Maiduguri-bound passengers spent the night at the airport, leading to a series of protests within the aerodrome.

Meanwhile, an airport source who refused to give her name for fear of reprimand had told our correspondent at the time that the passengers might still be airlifted before midnight to avoid disruptions to Sunday’s operations.

The source said, “Truly, many passengers sat helplessly at the airport. I learnt from the workers that it was a fuel-related issue, but only the airline can really explain what happened.”

When contacted, the spokesperson for the Nigeria Civil Aviation Authority, Michael Achimugu, told our correspondent that he gathered that the airline had been speaking with the passengers as events unfolded. He confirmed that issues relating to a lack of fuel had grounded the airline’s aircraft.

Achimugu did not, however, provide further information on why the airline was experiencing a shortage of fuel.

See also  Fuel Subsidy Was Big Scam – Ex-Minister Of Science and Technology, Ikoh Says

Achimugu said, “Yes, my CPOs have reported to me that the airline has been unable to fly the passengers because of fuel-related issues. I also learnt they have been updating the passengers, but you know when passengers get angry, they may not even listen to whatever information they are being provided with.”

When asked what exactly the issue was, he said, “What my CPOs told me is what I have told you. When we have more information, we will let you know.”

Efforts to speak with the airline’s spokesperson, Efe Osifo-Whiskey, were unsuccessful. He neither picked up his calls nor responded to text messages seeking clarification at the time.

Also, in a statement by the airline, Air Peace said the delay was caused by the unavailability of Jet A1 aviation fuel. Air Peace added that the fuel shortage also affected other airlines.

The Air Peace statement read partly, “The initial delays to our Abuja operations were occasioned by the unavailability of Jet A1 aviation fuel, which affected Air Peace and other airlines operating from the Abuja airport. Upon the availability of fuel, our affected flights commenced operations accordingly.

“However, our Abuja-Maiduguri service could not subsequently operate as planned because the tower in Maiduguri, which had given an extension for our flight to come in, later came back, as at the time of our calling for boarding, to state that the airport had become VFR and would no longer fly beyond sunset.”

While apologising to passengers, Air Peace added, “Throughout the disruption, passengers were duly informed of the delays and provided with refreshments. Following the cancellation, affected Maiduguri passengers were also provided with hotel accommodation, with arrangements made to operate the flight the following day.

See also  Cooking gas nears N2,000/kg ahead of Sallah celebrations

“We sincerely regret the inconvenience caused to our esteemed passengers and appreciate their patience and understanding. At Air Peace, the safety and wellbeing of our passengers remain paramount, and we will continue to prioritise these considerations in all our operations.”

However, sources among marketers said the product was available, although at a higher price. One of the sources told our correspondent that, “Airlines may have faced disruptions because a number of them were not supplied the product because they have refused to clear outstanding. They are owing in the millions.

“The truth is some are owing, and they won’t expect continuous delivery while they are yet to pay what they are owing.”

An airline source who also refused to give his name told our correspondent that a litre of Jet A1 currently sells for about N2,130 in Lagos and Abuja, while the price ranges between N2,180 and N2,230 per litre at airports outside the two major aviation hubs, depending on the location.

The source said although aviation fuel was available, the major challenge confronting airlines was the high cost of procuring the product, which he said had continued to drive up their operating expenses.

He added that the situation was particularly difficult for indigenous carriers because most of their revenues were generated in naira, while a substantial portion of their operating costs was either dollar-denominated or linked to foreign exchange.

According to the source, the high cost of operations has left several indigenous airlines struggling to remain in business, with some having to source funds from other areas to meet their aviation fuel obligations.

He called on the government to intervene in the situation to prevent total collapse of the operating carriers.

See also  CBN blacklists top loan defaulters

Also, the Managing Director of Aero Contractors, Ado Sanusi, confirmed that the product is available in the country, dismissing the allegation of its scarcity. He, however, agreed that the cost of the product remained a major concern for operators.

Sanusi, who spoke against the backdrop of concerns over Jet A1 availability, said the emergence of the Dangote refinery has helped in making the product available. According to him, Jet A1 currently sells for about N2,000 per litre in Lagos, while the price is slightly higher outside Lagos by approximately N100 per litre.

He said: “I am not aware of the scarcity of aviation fuel in Nigeria. With the Dangote refinery, how can we experience scarcity of the product locally? The only problem is that it is expensive to purchase. Presently, the product goes for N2,000 per litre in Lagos, while it is slightly more expensive outside Lagos with about N100 difference.”

Sanusi also clarified that Aero Contractors was not indebted to aviation fuel marketers, saying the airline had a policy of settling its fuel bills as soon as they were presented.

“I can’t comment on any other airline’s debts, but one thing is sure: at Aero Contractors, we are not indebted to fuel marketers. We pay all our bills as and when due. For clarity’s sake, what I am saying is that once the bill is submitted to us, we settle it immediately at Aero Contractors. That’s the way we work here,” he said.

Source: punchng.com

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Thales to develop Nigeria’s new satellite

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Thales Alenia Space has signed a contract with the Federal Government-owned NIGCOMSAT Ltd to build NigComSat-2A, a new geostationary telecommunications satellite that will boost digital connectivity across Africa.

In a release on Wednesday, the firm said it signed the deal in Cannes, France, on September 14,  2026.

It noted that the French-Italian joint venture, owned 67 per cent by Thales and 33 per cent by Leonardo, will develop the satellite to deliver high-quality television broadcasting, reliable broadband internet and modern digital services including voice calls and streaming.

According to the release, NigComSat-2A, with a launch mass of nearly four tonnes, will cover West and Central Africa through to Southern Africa.

It is designed to improve access in underserved and remote communities where terrestrial networks remain limited. Its expected in-orbit service life exceeds 15 years and will be based on Thales Alenia Space’s Spacebus B2 platform.

NigComSat’s Managing Director and Chief Executive Officer, Nkechi Egerton-Idehen, described the contract as a major step forward for Nigeria.

“The signing of this contract represents a bold step in Nigeria’s journey toward digital transformation,” she said.

“NigComSat-2A will not only strengthen our nation’s satellite communications capacity but also expand access to reliable broadband and digital services for millions of Africans, especially in underserved and remote communities. This project underscores NIGCOMSAT’s commitment to driving connectivity, fostering innovation, and enabling economic growth across the continent. We are proud to partner with Thales Alenia Space in delivering a satellite that will empower Africa’s digital future.”

Also, the President and Chief Executive Officer of Thales Alenia Space, Hervé Derrey, welcomed the partnership, saying, “I would like to thank NIGCOMSAT for placing their trust in our company.

See also  On food price crash, farmers fault FG’s order as agro-imports hit N2.2tn

“NigComSat-2A geostationary satellite will enable NIGCOMSAT to strengthen its competitive position by delivering reliable, high-quality services that meet the growing demand for connectivity and digital content worldwide. This announcement also underscores the success of our Spacebus B2 product line, renowned for its reliability, robustness and time-to-market efficiency.”

NIGCOMSAT Ltd, established on  April 4, 2006, under the Federal Ministry of Communications, Innovation and Digital Economy, owns and operates Nigeria’s geostationary communications satellites. Its current satellite, NigComSat-1R, launched in December 2011, was the first of its kind in Sub-Saharan Africa.

The new satellite is expected to support Africa’s expanding digital economy by providing greater flexibility and resilience in communications infrastructure, particularly in areas where ground-based networks are difficult to deploy.

Officials said it would contribute to digital inclusion, economic opportunity and wider access to information across the continent.

Source: punchng.com

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