Over two million persons affected by Maiduguri flood – Zulum

The federal government has announced that the Dangote Petroleum Refinery will begin distributing premium motor spirit (PMS), commonly known as petrol, starting this Sunday.

Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, made this known during a press conference in Abuja on Friday. Represented by Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS), Edun confirmed that all necessary agreements have been finalized for the first batch of petrol to be dispatched.

“I am pleased to announce that all arrangements have been completed, and the loading of the initial batch of PMS from the Dangote Refinery will commence on Sunday, September 15,” Edun stated.

He also revealed that the Nigerian National Petroleum Company (NNPC) Limited would begin supplying the Dangote refinery with approximately 385,000 barrels of crude oil per day (bpd) starting next month.

“From October 1, NNPC Ltd. will begin delivering around 385,000 bpd of crude oil to the Dangote refinery, with payment to be made in naira,” he said.

“In exchange, the Dangote refinery will provide PMS and diesel of equivalent value to the domestic market, also to be paid for in naira.”

Additionally, Edun stated that the Dangote refinery would only sell petrol to the NNPC, meaning marketers interested in purchasing petrol would have to source it through the NNPC. However, he noted that the refinery is free to sell diesel to any interested buyers.

“Diesel will be sold in naira to any off-taker by the Dangote refinery, while PMS will only be sold to the NNPC, which will then distribute it to various marketers for now,” he explained.

Edun’s remarks contrast with an earlier statement by the NNPC on September 7, where the company denied plans to be the exclusive distributor of petrol from the Dangote refinery.

Furthermore, Edun said that all related regulatory costs, including those involving the Nigeria Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), will also be paid in naira.

“We are establishing a one-stop shop to streamline service delivery from all regulatory and security agencies, as well as other stakeholders, to ensure the smooth implementation of this initiative. This office will be based at the Nigeria Ports Authority (NPA) in Lagos,” he said.

“The technical committee that developed this plan will transition into an implementation, execution, and monitoring committee, which will operate out of Lagos for the next three to six months.”

Regarding the decision to sell crude oil to local refineries in naira and purchase petrol from them in the same currency, Edun said this move is aimed at easing the pressure on the naira.

On July 29, the Federal Executive Council (FEC) approved a proposal by President Bola Tinubu, instructing the NNPC to sell crude oil to the Dangote refinery and other refineries in naira.

The minister added that this approach would help eliminate unnecessary transaction costs and improve the availability of petroleum products across the country.

Edun highlighted that the implementation committee, chaired by him, alongside the technical committee, had worked closely with the NNPC and the Dangote refinery to finalize the modalities for executing the FEC’s directive.

He expressed gratitude to President Tinubu for spearheading the initiative and assured him that the committee is fully committed to bringing his vision to fruition.