In a significant policy shift, petroleum marketers in Nigeria are now permitted to directly lift petrol from Dangote Refinery, eliminating the need for the Nigerian National Petroleum Company Limited (NNPC) to act as an intermediary. This development confirms previous speculations that NNPC is no longer the exclusive off-taker of products from the Dangote facility.
On Friday, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, issued a statement detailing this update. Edun, who also chairs the Naira-crude sale implementation committee, reported on the progress of the ongoing initiative for naira-based crude purchases and product sales.
The committee convened for its second review meeting on October 10 to evaluate the initiative’s implementation. Edun’s statement highlighted a successful operational transition in accordance with directives from the Federal Executive Council.
“This directive has established a strong framework for the local production and distribution of crude oil and refined products for domestic consumption in naira,” the statement noted.
With this new mechanism fully operational, along with the beginning of local production, Nigeria is on track to transition to a fully deregulated market for all petroleum products.
Looking ahead, Edun emphasized that “petroleum product marketers can now purchase PMS directly from local refineries, bypassing the NNPC.” He encouraged marketers to pursue direct purchases under mutually agreed commercial terms, which is expected to foster competition and improve market efficiency.
The government is optimistic that these changes will contribute to a more competitive market, ultimately benefiting consumers across Nigeria.
For more updates, join our WhatsApp channel: WhatsApp Channel