The federal government has announced that Dangote Petroleum Refinery will start the distribution of premium motor spirit (PMS), also known as petrol, on Sunday.
The minister of finance and coordinating minister of the economy, Wale Edun spoke on Friday at a press conference in Abuja.
Edun, who was represented by Zacch Adedeji, executive chairman of the Federal Inland Revenue Service (FIRS), said all agreements have been finalized for the loading of the first batch of petrol.
“I am glad to announce that all agreements have been completed and loading of the first batch of PMS from the Dangote Refinery will commence on Sunday, September 15,” Edun said.
He added that the Nigerian National Petroleum Company (NNPC) Limited will supply about 385,000 barrels of crude oil per day (bpd) to the Dangote refinery beginning next month.
“From October 1, NNPC Ltd. will commence the supply of about 385,000 bpd of crude oil to the Dangote refinery, to be paid for in naira,” he said.
“In return, the Dangote refinery will supply PMS and diesel of equivalent value to the domestic market, to be paid in naira.”
The minister also disclosed that the Dangote refinery will sell petrol to only the NNPC, stating that interested marketers would have to purchase the product from the national oil firm.
Nevertheless, Edun said the Dangote refinery can sell diesel to any off-taker.
“Diesel will be sold in naira by the Dangote refinery to any interested off-taker. PMS will only be sold to NNPC, NNPC will then sell to various marketers for now,” he said.
The minister’s statement contravenes NNPC’s claim on September 7 that it does not wish to be the only distributor of petrol produced by the Dangote refinery.
Furthermore, the minister mentioned that all associated regulatory costs pertaining to the Nigeria Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA) and others would also be paid for in naira.
“We are also setting up a one-stop shop that will coordinate service provision from all regulatory, and security agencies, and other stakeholders to ensure a smooth implementation of this initiative. This will be located in Nigeria Ports Authority (NPA), Lagos,” Edun said.
“The technical committee that worked to flesh out this initiative will transition to an implementation execution and monitoring committee that will be working out of Lagos for the next three to six months.”
Commenting on the approval to sell crude oil to local refineries in naira and purchase petrol from the refiners in the local currency, the finance minister said the decision would lessen pressure on the local currency.
On July 29, the federal executive council (FEC) approved a proposal by President Bola Tinubu instructing the NNPC to sell crude oil to the Dangote refinery and other refineries in naira.
Edun reiterated that the move would also remove unnecessary transaction costs, and enhance the availability of petroleum products in the country.
According to the minister, the implementation committee chaired by him, and the other technical committee had worked rigorously with the NNPC and Dangote refinery to plan out the details of the modalities for the implementation of the approval by the FEC.
He then appreciated President Tinubu for championing the idea and assured him that he could count on the committee to implement his vision.