The Federal Government has granted direct access to petroleum marketers to lift petrol directly from the Dangote refinery without going through the Nigerian National Petroleum Company Limited.
The Nigerian National Petroleum Company Limited (NNPC) is therefore ending its exclusive purchasing deal with Dangote Refinery, giving rooms for other fuel marketers to source petrol directly from the facility.
This new development confirms earlier speculation that NNPC would no longer be the sole off-taker of Dangote fuel.
In a statement on Friday, 11 October, 2024, Wale Edun, the Minister of Finance and Chairman of the Naira-crude sale implementation committee, Wale Edun, gave an update on the takeoff of crude purchase and product sales in naira transactions.
It was learnt that the Implementation Committee chaired by Edun was said to have held its second post-commencement review meeting on October 10, to evaluate the progress of the Crude Oil and Refined Products Sales in naira initiative.
The statement said.“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,”
Edun stated that the government is positive that, in the long term, these measures will create better market conditions for the benefit of all Nigerians.
Similarly, the Nigerian government has granted Dangote Refinery exclusive rights to be the sole supplier of jet fuel for Nigerian airlines.
The Minister of Aviation and Aerospace Development, Festus Keyamo announced this on Tuesday during an interview with Channels TV.
Keyamo said that, with his backing, airline companies have consented to appoint the refinery as the industry’s exclusive supplier of aviation fuel.
He noted that this choice is particularly significant as it aligns with the Nigerian Government’s recent agreement to trade naira for crude with Dangote.
