The federal government has announced that the loading of Premium Motor Spirit (PMS), commonly known as petrol, from the Dangote Refinery for local distribution will commence on Sunday, September 15, 2024. The Presidential Committee on the Sale of Crude Oil and Refined Products made this announcement at the conclusion of its meeting in Abuja on Friday.

Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), speaking on behalf of the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, revealed that the Nigerian National Petroleum Company Limited (NNPCL) would begin supplying the refinery with 385,000 barrels per day (kbpd) of crude oil starting from October 1. Payments for the crude oil will be made in Naira.

Adedeji further explained that the Dangote Refinery has agreed to sell petrol exclusively to NNPCL. Other marketers will be allowed to purchase diesel, which will also be sold in Naira. This arrangement aligns with a recent Federal Executive Council (FEC) approval to sell crude to local refineries in Naira and to facilitate the corresponding purchase of petroleum products in Naira.

“This initiative aims to reduce pressure on the Naira, eliminate unnecessary transaction costs, and enhance the availability of petroleum products in the country,” Adedeji stated.  He added that extensive discussions between the implementation committee, NNPCL, and the Dangote Refinery have led to finalizing the terms of the agreement, allowing PMS loading to begin on September 15.

Starting October 1, NNPCL will supply approximately 385 kbpd of crude to the refinery, which will then provide PMS and diesel of equivalent value to the domestic market, all transactions being conducted in Naira. While PMS will be sold exclusively to NNPCL for further distribution, diesel will be available for sale in Naira to other interested parties.

Adedeji also mentioned that all associated regulatory fees, including those payable to the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), will be paid in Naira. A one-stop coordination center will be set up at the NPA in Lagos to streamline the process, involving various regulatory and security agencies.

In conclusion, Adedeji expressed gratitude to the President for championing this initiative and assured that the committee is committed to realizing the President’s vision.