This shift marks a significant change in fuel distribution, confirming speculations that NNPC is no longer the sole off-taker of Dangote Refinery products.
Petroleum marketers can now directly lift petrol from Dangote Refinery without the Nigerian National Petroleum Company Limited (NNPC) acting as an intermediary.
This shift marks a significant change in fuel distribution, confirming speculations that NNPC is no longer the sole off-taker of Dangote Refinery products.
In a statement on Friday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who also chairs the Naira-crude sale implementation committee, provided an update on the ongoing naira-based crude purchase and product sales initiative.
The committee held its second post-commencement review meeting on October 10 to assess the progress of the initiative.
“The committee is pleased to report a successful transition of operations in line with the directive issued by the Federal Executive Council.
“This directive has established a robust framework for local production and distribution of crude oil and refined products for local consumption in naira,” the statement said.
“With this mechanism now in full operation, along with the commencement of local production, we are well-positioned to transition to a fully deregulated market for all petroleum products,” it added.
Moving forward, Edun’s statement emphasised that “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 from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency,” the statement said.
This is expected to promote competition and enhance market efficiency.
The government, Edun noted, is optimistic that these measures will lead to a more competitive market, benefiting Nigerians in the long run.