In a significant move, the Dangote Refinery is set to commence the distribution of Premium Motor Spirit (PMS) starting Sunday, following an agreement with the Nigerian National Petroleum Corporation (NNPC).
This was announced by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, during a press conference in Abuja on Friday.
Representing the minister, the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, confirmed that all necessary arrangements had been completed.
“The loading of the first batch of PMS from the Dangote Refinery will begin on Sunday, September 15,” Edun said.
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The NNPC will provide the refinery with about 385,000 barrels of crude oil per day starting October 1, paid for in Naira. In exchange, Dangote Refinery will supply PMS and diesel to the domestic market, also transacted in Naira.
While diesel will be available for sale to any buyer, PMS will initially be sold exclusively to the NNPC for distribution to other marketers.
Edun further explained that all regulatory costs, including those from the Nigerian Ports Authority (NPA) and Nigerian Maritime Administration and Safety Agency (NIMASA), will also be paid in Naira to support this initiative.
To streamline the distribution process, a one-stop shop will be set up at the Nigerian Ports Authority in Lagos. This shop will coordinate service provision from all regulatory and security agencies, ensuring smooth operations.
Additionally, the technical committee that developed this initiative will transition into an implementation and monitoring team based in Lagos for the next three to six months.
The initiative is part of the Federal Executive Council’s (FEC) approval, under the leadership of President Bola Tinubu, to sell crude oil to local refineries in Naira.
This move aims to reduce pressure on the currency, eliminate unnecessary transaction costs, and improve the availability of petroleum products across Nigeria.
The minister praised the efforts of the teams involved, expressing gratitude to President Tinubu for spearheading the project and reaffirming their commitment to fulfilling his vision for Nigeria’s energy sector.
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