The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has announced that the Dangote Refinery will begin distributing Premium Motor Spirit (PMS), commonly known as petrol, starting Sunday. Initially, this distribution will be exclusive to the Nigerian National Petroleum Company Limited (NNPCL).
This significant development was revealed during a press briefing held in Abuja on Friday, where Mr. Edun was represented by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji. The announcement signals a major step forward in the country’s efforts to ensure the local availability of petroleum products.
“I am glad to announce that all agreements have been completed and loading of the first batch of PMS from the Dangote Refinery will commence on Sunday, Sept. 15.“
“From Oct. 1, NNPC Ltd. will commence the supply of about 385kbpd of crude oil to the Dangote Refinery, to be paid for in Naira. In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market, to be paid in Naira.“
“Diesel will be sold in Naira by the Dangote Refinery to any interested off-taker. PMS will only be sold to NNPC, NNPC will then sell to various marketers for now.”
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In his address, Mr. Edun highlighted that all associated regulatory costs, including those from the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), will be paid exclusively in Naira. This shift is part of a broader initiative by the Federal Executive Council (FEC) to streamline transactions and reduce reliance on foreign currency.
Additionally, the Minister announced plans to establish a “one-stop shop” to coordinate and integrate the operations of various regulatory, security agencies, and other key stakeholders. This coordination hub, aimed at enhancing efficiency and ensuring the smooth implementation of the initiative, will be based at the NPA in Lagos.
To ensure sustained execution, Edun elaborated that the technical committee, which played a crucial role in developing the initiative, will evolve into an implementation, execution, and monitoring committee. This new body will operate from Lagos for the next three to six months, overseeing the finer details and ensuring that the initiative is rolled out successfully.
Moreover, the Federal Executive Council, led by President Bola Tinubu, has approved a landmark decision for crude oil sales to domestic refineries to be conducted in Naira.
Likewise, petroleum products will be purchased in the local currency. This policy is expected to alleviate pressure on the Naira, cut unnecessary transaction expenses, and ensure a stable supply of petroleum products across the country.
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Mr. Edun emphasized that the move will not only stabilize the market but also provide economic relief by eliminating multiple transaction layers.
He further explained that the implementation committee, which he chairs, has worked collaboratively with both the NNPCL and the Dangote Refinery to finalize the modalities for putting the FEC’s directive into action.
This new framework represents a strategic shift in Nigeria’s oil industry, with the potential to strengthen the nation’s economy and improve its energy security in the coming months.