Dangote Refinery has finalized an agreement with the Nigerian National Petroleum Corporation (NNPC) and will commence fuel distribution this Sunday, marking a significant step towards stabilizing fuel supply in Nigeria.
On Sunday, distribution of Premium Motor Spirit (PMS) is expected to begin from the Dangote Refinery as a result of their partnership with the Nigerian National Petroleum Corporation (NNPC).
Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, made this announcement.
On Friday, in Abuja, the minister revealed a new development during a press conference. Dr. Zacch Adedeji, represented by the Executive Chairman of the Federal Inland Revenue Service (FIRS), was present at this event.
Edun declared that he is happy to verify the finalization of all vital agreements, and loading of initial PMS group from Dangote Refinery will commence on Sunday, September 15.
Starting from October 1st, NNPC Ltd. plans to furnish Dangote Refinery with roughly 385,000 barrels of crude oil per day. The payment for the supply will be made in Naira currency while PMS and diesel products worth an equal amount will be transferred to the local market by the refinery’s end also using Naira as a transaction medium.
He added that any interested buyer could purchase diesel using Naira, but PMS would only be sold to NNPC for distribution among other marketers at the moment.
According to the minister, all expenses related to regulation of distribution, including fees charged by Nigerian Ports Authority (NPA) and Nigerian Maritime Administration and Safety Agency (NIMASA), will be paid in Naira.
In order to guarantee a seamless execution of this plan, a unified hub will be created at the Nigerian Ports Authority in Lagos, integrating all regulatory and security agencies’ services. Moreover, for the succeeding three to six months, the technical committee accountable for formulating this proposal will transform into an implementation and monitoring panel situated in Lagos.
The sale of crude oil to local refineries in Naira was previously approved by the Federal Executive Council (FEC) during President Bola Tinubu’s leadership, as reminded by Mr. Edun. This initiative is geared towards alleviating pressure on the Naira, eliminating needless transaction expenses and enhancing access to petroleum products domestically.
The committees involved in this project were recognized by the minister for their efforts, as he emphasized their collaboration with NNPC and Dangote Refinery to conclude the specifics of executing FEC’s consent.
He expressed gratitude to President Tinubu for leading this ingenious effort and pledged our dedication towards realizing his vision.
