In a significant shift for Nigeria’s petroleum sector, all petroleum marketers can now buy products directly from the Dangote Refinery in Lagos. This decision emerged from a meeting of the technical committee led by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, as announced by the ministry in Abuja.
The new arrangement marks the end of the previous system where the Nigerian National Petroleum Company Limited (NNPCL) acted as the exclusive off-taker of Dangote Refinery’s products. The Federal Executive Council (FEC) directed this change to implement a new Naira-based sales mechanism aimed at fostering a more competitive market.
During the second review meeting of the Implementation Committee on the Sales of Crude Oil and Refined Products, Mr. Edun highlighted that the focus was on transitioning towards a deregulated market structure for Premium Motor Spirit (PMS).
The most notable update is the introduction of a direct purchase model, enabling petroleum marketers to negotiate terms directly with local refineries. This new approach is expected to create a competitive market environment and streamline the supply chain for petroleum products.
Additionally, with the launch of local PMS production, the market is now better equipped to support these direct transactions, ultimately enhancing product availability and stabilizing market conditions for the benefit of all Nigerians.
Mr. Edun reassured stakeholders that the committee is committed to addressing any questions or concerns regarding this market transition and will actively engage with them to ensure a smooth implementation process. He described this development as a new era of growth and advancement for Nigeria’s petroleum industry.
Written By; Christopher Emuakpeje