This arrangement was part of a broader commercial agreement between the government and the Dangote Refinery, which outlines the terms for supplying crude oil to the facility and distributing refined petrol and diesel.
Speaking at a press briefing in Abuja, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, shared that the refinery would begin distributing petrol on Sunday, starting with 25 million liters per day. He also revealed that starting October 1, NNPCL would supply crude oil to the refinery, with payments made in naira. In return, Dangote Refinery will provide PMS and diesel to the domestic market, also priced in naira.
“Initially, PMS will only be sold to NNPCL, which will then distribute it to various marketers,” Edun explained, represented by Dr. Zaccheus Adedeji, Executive Chairman of the Federal Inland Revenue Service. He added that all associated regulatory costs, such as those related to the Nigerian Ports Authority and the Nigerian Maritime Administration and Safety Agency (NIMASA), would also be paid in naira.
Although this move contradicts earlier statements by NNPCL denying intentions to monopolize petrol distribution from the Dangote Refinery, the new directive allows the government to retain control over product pricing, based on agreements with the refinery.
The government’s decision to approve local refineries’ purchase of crude oil in naira is expected to reduce pressure on the currency, improve fuel availability, and cut unnecessary transaction costs.
