In a significant development for Nigeria’s petroleum industry, the Federal Government has officially granted petroleum marketers permission to purchase petrol directly from the Dangote Refinery.
This move bypasses the Nigerian National Petroleum Company Limited (NNPC), ending the state oil company’s role as the sole off-taker of fuel from the privately owned refinery.
The announcement was made by Wale Edun, the Minister of Finance and Chairman of the Naira-Crude Sale Implementation Committee, in a statement released on Friday.
Edun provided an update on the new policy, which allows for the purchase of crude oil and refined products in naira, a major shift aimed at boosting local production and consumption.
The Naira-Crude Sale Implementation Committee, chaired by Edun, held its second post-commencement review meeting on October 10 to assess the progress of the initiative. The committee confirmed that operations are now in line with directives issued by the Federal Executive Council (FEC).
“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,” Edun said.
He further stated that the operational mechanism is now fully functional, marking the start of local production. The new system is expected to pave the way for the full deregulation of Nigeria’s petroleum market.
“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 added.
Edun expressed optimism that these changes would result in long-term benefits for the Nigerian market, improving conditions and fostering competition. The transition is seen as a strategic move towards creating a more liberalized and efficient market for petroleum products, with the ultimate goal of benefiting all Nigerians.
This shift marks a new era for the nation’s energy sector, as it seeks to promote self-reliance and enhance the role of private refineries in domestic fuel distribution.