The Federal Government of Nigeria has officially permitted petroleum marketers to lift petrol directly from the Dangote refinery, bypassing the Nigerian National Petroleum Company Limited (NNPC). This decision marks a significant shift in the country’s fuel procurement process and confirms speculation that the NNPC would no longer be the exclusive off-taker of Dangote’s fuel.
In a statement released on Friday, Wale Edun, the Minister of Finance and Chairman of the Naira-crude sale implementation committee, provided an update following the committee’s recent meeting on October 10. This meeting focused on evaluating the progress of the Crude Oil and Refined Products Sales in naira initiative, which aims to facilitate local production and distribution for domestic consumption.
Edun highlighted the successful transition to a new operational framework established by the Federal Executive Council, which promotes local production and aims to achieve a fully deregulated market for all petroleum products. He stated, “With this mechanism now in full operation, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC. Marketers are encouraged to initiate direct purchases on mutually negotiated commercial terms, promoting competition and improving market efficiency.”
The government expresses optimism that these changes will lead to better market conditions, ultimately benefiting Nigerian consumers.
