The Federal Government has granted petroleum marketers the authority to lift petrol directly from the Dangote refinery, bypassing the Nigerian National Petroleum Company Limited (NNPC).
This development confirms earlier speculations that NNPC would no longer serve as the exclusive off-taker of fuel from the Dangote facility.
In a statement released on Friday, the Minister of Finance and Chairman of the Naira-Crude Sale Implementation Committee, Wale Edun, provided updates on the progress of crude procurement and product sales under naira transactions.
According to the statement, the Implementation Committee, headed by Edun, held its second post-commencement review meeting on October 10 to assess the Crude Oil and Refined Products Sales in Naira 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.
“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.
“Moving forward, 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.
Edun also expressed confidence that, over time, these policies would result in more favorable market conditions to the benefit of the Nigerian populace.
