The Federal Government has revealed that the Nigerian National Petroleum Company Limited (NNPC) will be the exclusive purchaser of Premium Motor Spirit (PMS), also known as petrol, from the Dangote Refinery.
As part of the commercial agreement for crude oil supply and product distribution, interested marketers will be required to procure PMS from NNPC through its trading arm.
This development was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a press briefing in Abuja on Friday.
Notably, this announcement contradicts NNPC’s earlier statement that it would not be the sole distributor of petrol produced by the Dangote refinery.
The directive implies that the government will maintain control over pricing, as it will be determined by the agreement between the government and the refinery.
According to Edun, represented by the Executive Chairman of the Federal Inland Revenue Service, Dr. Zaccheus Adedeji, Dangote Refinery will commence distributing 25 million liters of petrol per day to marketers starting Sunday, September 15, 2024.
Additionally, NNPC will begin supplying crude oil to Dangote Refinery on October 1, 2024, with payments made in naira. In return, the refinery will supply PMS and diesel of equivalent value to the domestic market, also paid for in naira.
The minister stated that all regulatory costs associated with the Nigeria Ports Authority, Nigerian Maritime Administration and Safety Agency, and other agencies will be paid in naira.
Furthermore, diesel sales by Dangote Refinery will be conducted in naira, with interested buyers able to purchase the product directly.
A technical committee will transition to an Implementation, Execution, and Monitoring Committee, operating from Lagos for the next three to six months to oversee the initiative.
Edun emphasized that the decision to sell crude oil to local refineries and purchase refined products in naira, as approved by the Federal Executive Council on July 29, will alleviate pressure on the local currency.
This move is expected to strengthen the Nigerian economy and promote local refining capacity.
