The Federal Government has approved a new system allowing petroleum marketers to lift petrol directly from the Dangote Refinery, bypassing the Nigerian National Petroleum Company Limited (NNPC). This move is part of ongoing efforts to fully deregulate Nigeria’s petroleum market.
Wale Edun, Minister of Finance and Chairman of the Naira-Crude Sale Implementation Committee confirmed the development in a statement on Friday. Edun highlighted the progress of the government’s initiative to sell crude oil and refined products in naira for local consumption. The announcement followed the committee’s second review meeting held on October 10, where the transition to the new framework was evaluated.
“The committee is pleased to announce a seamless transition to the new framework following the Federal Executive Council’s directive. This new model establishes a strong system for the domestic production and distribution of crude oil and refined products, all sold in naira,” the statement read.
Under the new system, petroleum marketers can now purchase Premium Motor Spirit (PMS) directly from local refineries, such as Dangote Refinery, without involving NNPC. This direct transaction process is expected to foster competition, improve market efficiency, and streamline the supply chain, ultimately benefiting consumers.
Edun expressed confidence that the implementation of this mechanism would position Nigeria towards a fully deregulated petroleum market, creating a more favorable environment for long-term economic growth.
The government’s plan is designed to enhance local production capacity while reducing dependency on foreign imports, allowing the market to adjust to global oil price dynamics in a competitive and transparent manner.
