IPMAN Eyes $10bn Mega Refinery to Reclaim Fuel Market Control
Atume Terfa
Nigeria’s independent fuel marketers are preparing for what could become one of the most ambitious private-sector energy projects in the country’s history — a proposed $10 billion refinery and petrochemical complex in Akwa Ibom State.
At the centre of the plan is the Independent Petroleum Marketers Association of Nigeria (IPMAN), which is seeking a massive credit facility to finance a 300,000 barrels-per-day refinery under the proposed IPMAN Refinery and Petrochemicals Company. The project, according to the association, is aimed at breaking long-standing supply vulnerabilities and reducing reliance on imports and dominant refiners.
The move comes amid persistent volatility in Premium Motor Spirit (PMS) pricing. Since deregulation and subsidy removal reshaped Nigeria’s downstream market, independent marketers have struggled with shifting wholesale prices and logistics costs.
The emergence of the Dangote Petroleum Refinery and Petrochemicals, Africa’s largest refinery with a 650,000 barrels-per-day capacity, has altered supply dynamics. While many marketers now lift products from the facility, frequent price adjustments and distribution arrangements have tightened margins for smaller operators.
IPMAN’s National President, Abubakar Maigandi, says the association believes owning a refinery would offer greater pricing stability, stronger negotiating power, and improved supply chain control in an increasingly competitive environment.
To move the project forward, IPMAN plans to formally present its proposal to Bola Ahmed Tinubu, requesting government facilitation for the $10 billion funding package.
Maigandi has expressed optimism that once financing is secured, the refinery could be delivered within an accelerated timeline of about one year — an ambitious target in Nigeria’s oil and gas landscape.
Nigeria’s downstream sector has undergone sweeping changes following the withdrawal of fuel subsidies and the transformation of the Nigerian National Petroleum Company Limited from its previous sole-importer role. With the Port Harcourt and Warri refineries yet to operate at optimal capacity, PMS supply has largely depended on imports and production from Dangote’s facility.
IPMAN has also raised concerns about distribution costs. Although members lift products from Dangote’s refinery, many reportedly rely on intermediaries such as MRS Oil Nigeria Plc for supply logistics, adding transportation expenses that affect pump prices.
For independent marketers, the refinery project is more than infrastructure — it is a strategic bid for self-reliance. By establishing their own refining capacity, they hope to stabilize operations, reduce exposure to supply disruptions, and contribute to a more balanced downstream market.
If realised, the Akwa Ibom refinery could significantly reshape Nigeria’s fuel ecosystem — signaling a new chapter where independent marketers move from being price takers to market makers in Africa’s largest oil economy.
