Dangote Refinery and Pinnacle Oil & Gas Limited have signed a 13-year agreement to enhance petroleum product distribution across Nigeria. The deal focuses on the operation of Pinnacle Oil’s terminal at the Lekki Free Zone, which is expected to significantly improve distribution efficiency.
According to Robert Dickerman, Managing Director of Pinnacle Oil, the partnership aims to lower costs and reduce delays in the transportation of petroleum products, benefiting both consumers and the industry as a whole.
“At great expense, we built this terminal with the goal of improving efficiency in the distribution of petroleum products,” Dickerman said. He clarified that the facility was not intended to undermine Dangote’s refinery but was developed in cooperation with Dangote Group. “We even proposed and invested in pipelines for a more affordable and efficient means of distribution, and Dangote wholeheartedly agreed to the project,” Dickerman explained. This pipeline system, designed to connect Dangote Refinery to the distribution network, significantly reduces the costs of shipping or trucking, ensuring smoother operations across the country.
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The partnership has already yielded tangible results. Industry experts note that prior to the Pinnacle terminal, Nigerian ports faced restrictions that forced imported cargo to be transferred to smaller vessels, increasing delivery times and costs. With the new terminal, full cargoes can be offloaded in under 40 hours, eliminating delays and inefficiencies associated with ship-to-ship transfers. This development, Dickerman emphasized, has been a game-changer for the country since its launch in 2021.
Despite recent criticisms from Dangote Refinery over the quality of imported petroleum products, Dickerman remains firm in his belief that a market-based approach is essential for Nigeria’s energy security. “Competition drives better pricing and quality. The consumer should care only for good quality products at the lowest prices,” he said. He added that the entire industry would benefit from a distribution system that keeps prices competitive and avoids supply disruptions. “There’s no need to recreate a network where every truck has to load at one point for the whole country,” he concluded.
This partnership between Dangote and Pinnacle Oil is expected to further strengthen Nigeria’s petroleum market by offering more reliable, cost-effective solutions, benefiting both consumers and businesses alike.
