₦airaland Forum

The federal government says Dangote Petroleum Refinery will commence the distribution of premium motor spirit (PMS), also known as petrol, on Sunday.

Wale Edun, the minister of finance and coordinating minister of the economy, spoke on Friday at a press conference in Abuja.

The minister, who was represented by Zacch Adedeji, executive chairman of the Federal Inland Revenue Service (FIRS), said all agreements have been completed for the loading of the first batch of petrol.

“I am glad to announce that all agreements have been completed and loading of the first batch of PMS from the Dangote Refinery will commence on Sunday, September 15,” Edun said.

The minister said the Nigerian National Petroleum Company (NNPC) Limited will supply about 385,000 barrels of crude oil per day (bpd) to the Dangote refinery starting next month.

“From October 1, NNPC Ltd. will commence the supply of about 385,000 bpd of crude oil to the Dangote refinery, to be paid for in naira,” he said.

“In return, the Dangote refinery will supply PMS and diesel of equivalent value to the domestic market, to be paid in naira.”

‘DANGOTE REFINERY TO SELL PMS TO ONLY NNPC’

Edun also said the Dangote refinery will sell petrol to only the NNPC, noting that interested marketers would have to buy the product from the national oil firm.

However, the minister said the Dangote refinery can sell diesel to any off-taker.

“Diesel will be sold in naira by the Dangote refinery to any interested off-taker. PMS will only be sold to NNPC, NNPC will then sell to various marketers for now,” he said.

Edun’s statement contradicts NNPC’s claim on September 7 that it does not intend to be the sole distributor of petrol produced by the Dangote refinery.

In addition, the minister said all associated regulatory costs pertaining to the Nigeria Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA) and others would also be paid for in naira.

“We are also setting up a one-stop shop that will coordinate service provision from all regulatory, and security agencies, and other stakeholders to ensure a smooth implementation of this initiative. This will be located in Nigeria Ports Authority (NPA), Lagos,” Edun said.

“The technical committee that worked to flesh out this initiative will transition to an implementation execution and monitoring committee that will be working out of Lagos for the next three to six months.”

'CRUDE OIL SALE IN NAIRA WILL REDUCE COST, PRESSURE ON LOCAL CURRENCY’

Speaking on the approval to sell crude oil to local refineries in naira and purchase petrol from the refiners in the local currency, Edun said the decision would reduce pressure on the local currency.

On July 29, the federal executive council (FEC) approved a proposal by President Bola Tinubu directing the NNPC to sell crude oil to the Dangote refinery and other refineries in naira.

The minister said the move would also eliminate unnecessary transaction costs, and improve the availability of petroleum products in the country.

According to Edun, the implementation committee chaired by him, and the other technical committee had worked intensely with the NNPC and Dangote refinery to fashion out the details of the modalities for the implementation of the approval by the FEC.

Edun thanked Tinubu for championing the initiative and assured the president that he could count on the committee to implement his vision.

miiraaj:
I still don't understand this arrangement oooo.

dinomalaiye:
If nnpc is not his sole crude supplier then he shouldn't be selling to only nnpc or this their new relationship will spoil very fast.

Ojuntana:
I hope all those dumb Aghadorians can now see that it's NNPCL that's been lying all along out of hate and envy for Dangote refinery.
The plan has always been what Dangote said. Give them Nigeria's domestic crude allocation to be paid for in naira and get petrol for NNPCL to be paid for in naira as well. The other products will have margins determined by the market and Dangote is free to sell to anyone including international market as gain.
This is a win- win move for Nigeria and the economy and I do not understand why NNPCL was grandstanding and causing unnecessary tension in the country with their lies. Kyari needs to be sacked. That he's still there till now is a wonder I can't fathom. NNPCL's corporate behaviour has been nothing short of scandalous under him.
The part I don't get from Edun's speech is associated fees for NPA and NIMASA. What fees are those? Are we making use of ports or waterways in transporting and loading Dangote fuel? I hope this is not chop for the boys.

Lifestone:
Last part of your write up, all products produced in Export Processing Zone will have to be imported into the country. That's how EPZ works.

Lifestone:
NNPCL will supply 385,000bpd and receive equivalent in PMS and diesel. It's a fair deal.

Lifestone:
NNPCL will buy all the petrol from Dangote and in turn sell to retailers. I suspect NNPCL will do under recovery of cost aka subsidy so the PMS cost will not be over the roof.

Didijiji:
Saying how much PMS will sell per liter has become rocket science

Stewpid party called APC

The current state of Nigeria and the gradual destruction of the country was planned and executed at Ojota in 2012. We are where we are because of those useless people who came out to protest back then, but are suddenly dumb because their brother is on rampage destroying Nigeria

Ojuntana:
Where did you get that from

miiraaj:
The same NNPC that has been lamenting to running at a loss as a result of the under recovery?

If what you say is true, then the government should stop to telling lies about deregulation.

Lifestone:
At this point , I think GMD of NNPCL should resign for his flip flops. I think he didn't know the limit of his power and seems distance from the government in which he is serving.
He has been overruled again on Dangote

Godfullsam:
Mention any tribe that criticize this useless administration more than the same tribe you are accusing of becoming dumb.

You idiots always find a way to throw blames as usual.

miiraaj:
I still don't understand this arrangement oooo.

Why should NNPC be the sole distributor of petrol from a private refinery of someone you once accused of monopoly in Nigeria, for a product you claim to be fully deregulated?

This whole NNPC-DANGOTE rigmarole raises a lot of doubts, on the intent of this administration in providing affordable petrol to Nigerians.

I think both NNPC and DANGOTE are looking for an exploitative advantage.