The Federal Government and Dangote Refinery have finalized an agreement to commence the loading of Premium Motor Spirit (PMS), also known as petrol, for local consumption starting Sunday, September 15, 2024.
This development was announced by the Presidential Committee on the Sale of Crude Oil and Refined Products following a meeting held in Abuja on Friday night.
Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, shared the outcome, revealing that the Nigerian National Petroleum Company Limited (NNPCL) would begin supplying 385,000 barrels per day (kbpd) of crude oil to the Dangote Refinery starting from October 1. The crude will be paid for in Naira, aligning with recent government policies.
The committee, chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, also decided that Dangote Refinery will exclusively sell petrol to NNPCL. Meanwhile, diesel produced by the refinery will be available to any marketer, and payments for both petrol and diesel will be made in Naira.
In an effort to reduce product costs, the committee has decided to eliminate unnecessary charges that could increase the final price of refined products.
Adedeji stated, “The Federal Executive Council (FEC), under the leadership of Mr. President, approved the sale of crude oil to local refineries in Naira and the corresponding purchase of petroleum products in Naira. This move is expected to ease pressure on the Naira, cut down on transaction costs, and improve the availability of petroleum products in Nigeria.”
He added that since the FEC approval, the implementation committee, led by the Minister of Finance, has worked with NNPCL and Dangote Refinery to finalize the operational details of this initiative.
Adedeji confirmed, “All agreements have been finalized, and the loading of the first batch of PMS from Dangote Refinery will begin on Sunday, September 15. Starting October 1, NNPCL will supply approximately 385 kbpd of crude oil to the refinery, which will be paid for in Naira. In return, Dangote Refinery will provide PMS and diesel of equivalent value for the domestic market, also to be paid for in Naira.”
Diesel sales, he explained, will be open to all interested buyers, while petrol will initially be sold only to NNPCL, which will then distribute it to other marketers.
Furthermore, all associated regulatory costs, such as those from the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), will be paid in Naira. A one-stop coordination center, located at the NPA in Lagos, will be established to streamline services from all regulatory and security agencies, ensuring smooth implementation.
Adedeji concluded by expressing gratitude to President Bola Tinubu for championing the initiative, assuring that the committee will fully implement the president’s vision.
