The Dangote Refinery will begin supplying Premium Motor Spirit (PMS) to the NNPC exclusively starting on Sunday, according to a statement made by Wale Edun, the Coordinating Minister of the Economy and Minister of Finance.
At a news conference in Abuja on Friday, Edun made this revelation on behalf of Dr. Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS).
“I’m glad to announce that all agreements have been fulfilled and that the first batch of PMS from the Dangote Refinery will be loaded on Sunday, September 15,” he stated.
“NNPC Ltd. will begin supplying approximately 385kbpd of crude oil to the Dangote Refinery on October 1, with payment in Naira. In exchange, the Dangote Refinery will sell PMS and diesel of equal 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.”
According to Edun, all associated regulatory fees would be settled in naira, including those from the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Ports Authority (NPA).
In order to guarantee the initiative’s seamless execution, he also stated intentions to create a one-stop shop that would coordinate services from security and regulatory authorities as well as other stakeholders. The NPA in Lagos would serve as the location of this coordination centre.
Edun went on to say that the initiative’s technical committee will become an implementation, execution, and monitoring committee based in Lagos for the following three to six months.
FEC Approves Sale Of Crude Oil In Naira
Edun stated that the purchase of petroleum products in Naira as well as the sale of crude oil to nearby refineries in Naira had been authorised by the Federal Executive Council (FEC), which is chaired by President Bola Tinubu.
He clarified that this program will reduce needless transaction expenses, relieve pressure on the Naira, and increase the nation’s supply of petroleum products.
The minister continued by saying that NNPCL and Dangote Refinery had collaborated extensively with the technical committee and implementation committee, both of which he leads, to finalise the procedures for carrying out the FEC’s approval.
Backstory
A little more than a year after the 650,000-barrel Dangote refinery and petrochemical complex was put into service, the firm declared earlier this month that it had finally started refining petrol and will start distribution.
The Federal Executive Council (FEC) authorised the sale of crude oil to the Dangote refinery in Naira and requested that oil producers prioritise delivery to the refinery and other local refineries across the nation, despite initial back and forth with oil industry authorities.
The NNPC’s previous position, which said that other marketers are free to purchase fuel from the refinery and that it is not the only off-taker, is contradicted by the plans to sell petrol to just the NNPC before selling to other marketers.
