The Federal Government has announced that the Nigerian National Petroleum Company Limited will be the only buyer of petrol from the Dangote Refinery.
Interested marketers will have to purchase the petrol through NNPCL’s trading company.
This decision was part of an agreement between the government and Dangote Refinery on how crude oil will be supplied to the refinery and how petrol and diesel will be distributed from the facility.
At a press briefing on Friday in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, revealed the details. The minister, represented by the Executive Chairman of the Federal Inland Revenue Service, Dr. Zaccheus Adedeji, said, “I am glad to announce that all agreements have been put in place, and the loading of the first batch of PMS, as already announced by NNPC, will commence on Sunday, September 15, 2024.”
Starting from October 1, 2024, NNPCL will begin supplying crude oil to Dangote Refinery, which will be paid for in naira. “In return, Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market, also to be paid for in naira,” Edun added.
For now, only NNPCL will buy petrol from the refinery. “But for now, PMS will only be sold to NNPC. NNPC will then sell to various marketers,” the minister clarified.
The government also said that diesel from the Dangote Refinery can be sold to any interested buyer, and all payments will be made in naira, including regulatory costs related to the Nigeria Ports Authority, Nigerian Maritime Administration and Safety Agency, and others.
“Diesel will be sold in naira by Dangote Refinery to any interested off-taker,” said Edun. He added, “All associated regulatory costs – NPA, NIMASA, Federal Inland Revenue and all other regulatory fees – will be paid in naira.”
This new arrangement is expected to help reduce pressure on the naira and improve the availability of petroleum products in Nigeria. The government previously approved a proposal allowing the sale of crude oil to Dangote Refinery and other local refineries in naira to avoid unnecessary transaction costs.
Edun noted that the move would eliminate extra transaction costs and make petroleum products more available to Nigerians.
