The Dangote Refinery will commence the distribution of Premium Motor Spirit (PMS) on Sunday, September 15, marking a significant step towards addressing Nigeria’s fuel supply needs.
This announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, during a press briefing in Abuja.
Mr. Edun, represented by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, stated that agreements have been finalized, and the first batch of PMS from the Dangote Refinery is set for distribution.
Starting from October 1, the Nigerian National Petroleum Company Limited (NNPC Ltd.) will begin supplying approximately 385,000 barrels per day (kbpd) of crude oil to the refinery, with payment to be made in Naira. In exchange, the refinery will provide equivalent amounts of PMS and diesel, also paid for in Naira.
“Diesel will be sold directly in Naira to any interested buyer, while PMS will exclusively be sold to NNPC Ltd., which will then distribute to marketers,” Edun said. He further stated that all associated regulatory fees, including those from the Nigeria Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), would also be paid in Naira.
To streamline operations, a “one-stop shop” will be established at the NPA office in Lagos, coordinating service provisions from regulatory and security agencies, along with other stakeholders. This hub aims to ensure a seamless execution of the initiative.
A technical committee, responsible for outlining the details of this process, will transition into an implementation and monitoring committee based in Lagos. They will oversee the operations for the next three to six months.
This initiative follows the approval by the Federal Executive Council (FEC), led by President Bola Tinubu, to sell crude oil to local refineries in Naira and purchase petroleum products domestically in the same currency.
Edun emphasized that this move would alleviate pressure on the Naira, eliminate unnecessary transaction costs, and improve the availability of petroleum products.
“We sincerely thank President Tinubu for spearheading this groundbreaking initiative and assure him that his vision will be fully implemented,” Edun said, appreciating the dedication of the technical teams involved.
The News Agency of Nigeria (NAN) reported that the presidential committee on the sale of crude oil and refined products for domestic consumption in Naira, chaired by Edun, has been actively working to finalize the implementation of the plan.
