Abubakar Megandi Shetima, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), stands as a vital figure in Nigeria’s petroleum industry. Leading an organisation responsible for nearly 80% of retail outlets nationwide, Shetima provides insights into the critical role of IPMAN, challenges in distribution, and the future of local refining. In an exclusive interview with Petroleumprice.ng, he discusses depot pricing, infrastructure development, and the importance of transparency in the petroleum sector.
Interview Questions and Answers
Q1: How would you describe IPMAN’s impact on the Nigerian petroleum sector?
A: “IPMAN is the backbone of Nigeria’s oil distribution network. We control almost 80% of retail outlets nationwide. Without IPMAN, there is no distribution, and without distribution, there is no product at fuel stations. This makes us indispensable to the industry.”
Q2: Transparency has been a key concern in the industry. What improvements have been made within IPMAN?
A: “Transparency has significantly improved. Leadership challenges in the past hindered progress, but with true leaders now in place, we defend the interests of independent marketers. For instance, our zonal chairman constructed a large IPMAN house within five years, which was recently commissioned a sign of growth and accountability.”
Q3: Recent price hikes at depots have caused panic. What’s your take on this?
A: “The era of panic buying is over. With Dangote Refinery in operation, products are consistently available. Although fuel prices are deregulated and may fluctuate slightly, the adjustments typically around 5% are minor and manageable. Prices will drop once crude oil prices decline.”
Q4: Should local refineries be subsidised by the government?
A: “Absolutely. Subsidising local refineries would allow us to sell products to motorists at lower rates and enable Nigeria to export refined products. Supporting local refineries is critical for reducing costs and boosting the economy.”
Q5: What role do local refineries play in ensuring fuel availability?
A: “The progress made by local refineries is commendable. For instance, Dangote Refinery’s high production capacity ensured there were no fuel shortages during the festive season a time typically marked by scarcity. This stability demonstrates the impact of increased local refining capacity.”
Q6: What is your message to the government and stakeholders about infrastructure challenges?
A: “Non-functional depots in Ibadan, Mosimi, Ore, and Satellite need rehabilitation. Reviving these facilities will reduce transportation costs and ease distribution burdens. The government must bring independent marketers closer to petroleum production to stabilise prices and improve supply.”
This interview with Abubakar Megandi Shetima highlights IPMAN’s pivotal role in ensuring Nigeria’s fuel distribution and affordability. From transparency improvements to advocating for local refinery subsidies, Shetima underscores the importance of collaboration between the government and stakeholders in addressing the sector’s challenges.
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