NIGERIAN GOVERNMENT ALLOWS OIL MARKETERS TO BYPASS NNPC, DIRECTLY SOURCE PETROL FROM DANGOTE REFINERY
Petroleum marketers can now directly purchase petrol from the Dangote Refinery without the Nigerian National Petroleum Company Limited (NNPC) acting as a middleman. This marks a major shift in fuel distribution, confirming that NNPC is no longer the exclusive off-taker of products from the Dangote Refinery.
In a statement released on Friday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who also chairs the Naira-Crude Sale Implementation Committee, provided updates on the ongoing initiative for naira-based crude purchases and product sales. The committee held its second review meeting on October 10 to assess the progress of the program.
“The committee is pleased to report a smooth transition of operations, in line with the directive issued by the Federal Executive Council," the statement said. "This directive has established a strong framework for the local production and distribution of crude oil and refined products for domestic consumption in naira.”
With the mechanism fully operational and local production underway, Edun noted that the country is now well-positioned to move towards a fully deregulated market for all petroleum products.
The statement further highlighted that "petroleum marketers can now directly purchase PMS from local refineries without NNPC's intermediary role." Marketers are encouraged to engage in direct transactions with refineries under mutually agreed commercial terms, a move that is expected to foster competition and boost market efficiency.
Edun expressed optimism that these reforms will create a more competitive market, ultimately benefiting Nigerians in the long term.
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