The Dangote Refinery is set to start distributing Premium Motor Spirit (PMS) on Sunday, following an agreement with the Nigerian National Petroleum Corporation (NNPC).
This announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.
Represented by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, the minister disclosed the development during a press conference in Abuja on Friday.
“I am pleased to confirm that all necessary agreements have been finalized, and the loading of the first batch of PMS from the Dangote Refinery will begin on Sunday, September 15,” Edun stated.
From October 1, the NNPC Ltd. will provide the Dangote Refinery with approximately 385,000 barrels per day of crude oil, which will be paid for in Naira. In exchange, the refinery will supply PMS and diesel of equivalent value to the domestic market, also to be transacted in Naira.
“Diesel will be available for sale in Naira to any interested buyer, while PMS will be sold exclusively to NNPC for distribution to other marketers for the time being,” he added.
All regulatory costs associated with the distribution, including those from the Nigerian Ports Authority (NPA) and Nigerian Maritime Administration and Safety Agency (NIMASA), will also be settled in Naira, according to the minister.
To ensure a smooth implementation of this initiative, a one-stop shop will be established at the Nigerian Ports Authority in Lagos, coordinating service provision from all regulatory and security agencies. Furthermore, the technical committee responsible for developing this initiative will transition to an implementation and monitoring committee based in Lagos for the next three to six months.
Mr. Edun reminded that the Federal Executive Council (FEC), under President Bola Tinubu’s leadership, had previously approved the sale of crude oil to local refineries in Naira. The initiative aims to reduce pressure on the Naira, eliminate unnecessary transaction costs, and improve the availability of petroleum products within the country.
The minister acknowledged the efforts of the committees involved in this project, highlighting their work with the NNPC and Dangote Refinery to finalize the details for implementing the FEC’s approval.
“We sincerely thank President Tinubu for championing this innovative initiative and assure him of our commitment to fulfilling his vision,” he said.
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