News
Nigerian Govt Orders NNPC As Exclusive Buyer Of Dangote Petrol
The Federal Government has appointed the Nigerian National Petroleum Company Limited (NNPC) as the exclusive buyer of Premium Motor Spirit (PMS) from the Dangote Refinery.
According to the agreement, marketers interested in purchasing the product will need to obtain it through NNPC’s trading company.
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EKO HOT BLOG reports that this decision follows a negotiation between the government and Dangote Refinery regarding the commercial terms for crude oil supply, as well as the off-taking and distribution of petrol and diesel.
Finance Minister Wale Edun announced the development at a press briefing in Abuja on Friday. This new directive contrasts with a previous statement from NNPC, which had indicated that it did not plan to be the sole distributor of petrol from the Dangote refinery.
The directive allows the government to retain control over petrol pricing, which will be determined by the agreement between the government and the refinery.
Dr. Zacceus Adedeji, Executive Chairman of the Federal Inland Revenue Service, conveyed that the distribution of petrol from the Dangote refinery will start on Sunday, with an initial supply of 25 million litres per day.
Starting October 1, NNPC will begin supplying crude oil to the Dangote Refinery, with payments to be made in naira. In return, Dangote Refinery will supply an equivalent value of petrol and diesel to the domestic market, also paid for in naira.
NNPC Buyer Dangote Petrol
Edun further mentioned that the refinery would sell diesel to interested buyers in naira, and all regulatory costs associated with the transaction, including those from the Nigeria Ports Authority and the Nigerian Maritime Administration and Safety Agency, would also be paid in naira.
He noted that this new system aims to reduce the pressure on the naira and eliminate unnecessary transaction costs, ultimately improving the availability of petroleum products in Nigeria.
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This approach follows a directive from the Federal Executive Council on July 29, which approved the sale of crude oil and purchase of refined products in naira.
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