The Federal Government has officially granted petroleum marketers the green light to lift petrol directly from the Dangote Refinery, marking a significant shift in the fuel distribution process.
Previously, the Nigerian National Petroleum Company Limited held the sole right to distribute products from the refinery.
This decision puts an end to speculation, confirming that NNPC will no longer serve as the exclusive off-taker of fuel from the Dangote facility.
The PUNCH reported that the Minister of Finance and Chairman of the Naira-Crude Sale Implementation Committee, Wale Edun, provided an update on this development through a statement released on Friday.
He highlighted the progress of the government’s new approach to purchasing crude oil and selling refined products within Nigeria using the naira.
Edun pointed out that he committee overseeing the initiative held its second post-commencement review meeting on October 10, where the results of this transition were assessed.
The statement noted, “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.”
This indicated that the transition has moved smoothly, with local production now complementing the sale of these products in Nigeria’s local currency.
Additionally, the statement underscored the government’s plan to fully deregulate the petroleum market, noting that this transition is a step in that direction. Edun explained, “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.”
One of the most impactful changes is that petroleum marketers will now have the freedom to purchase Premium Motor Spirit directly from refineries such as Dangote’s, bypassing NNPC as the intermediary. As per the government’s directive, “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 also expressed the government’s optimism that these changes will have positive long-term effects. He reaffirmed that the measures will create a more competitive and efficient market, ultimately benefiting Nigerian consumers.
The new structure is expected to strengthen the domestic fuel supply chain and reduce inefficiencies linked to the previous centralized distribution model.
This shift in policy comes as part of a broader effort to reshape Nigeria’s petroleum sector by promoting market-driven practices, improving domestic refining capacity, and reducing the country’s reliance on imports.
The move also aligns with the Federal Government’s push for economic diversification and greater utilization of the naira in local transactions.
