Victor Ezeja
The Nigerian government has said all arrangements have been concluded for the sale of crude oil in naira to Dangote Refinery and other local refineries and also sale of refined petroleum products in naira.
It also clarified that Dangote Refinery will sell its Premium Motor Spirit (PMS) also known as petrol only to the Nigeria National Petroleum Company Limited (NNPCL) to distribute across the country, starting from Sunday, 15th September (tomorrow).
Join our WhatsApp ChannelIt said any interested marketer can buy through NNPCL.
Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, made this known on Friday in Abuja shortly after the Technical Sub-Committee meeting on the sale of crude oil to local refineries in naira.
According to a statement by the Director, Information and Public Relations of the ministry, Mohammed Manga, the minister who was represented by the Executive Chairman, Federal Inland Revenue Service (FIRS), Dr Zacch Adedeji, announced the completion of all agreements and modalities for the implementation of the sale of crude to local refineries in naira and corresponding purchase of petroleum products in the local currency as approved by the Federal Executive Council (FEC).
Prime Business Africa recalls that President Bola Tinubu had in July directed that crude oil should be sold to local refineries in naira, while petroleum products should also be purchased in naira.
The goal of the initiative is to ease the pressure on the local currency and remove unnecessary transaction costs, and improve availability of petroleum products across the country.
The minister said the committee has worked with NNPCL and Dangote Refinery to fashion out the details of the modalities for the implementation of the FEC approval.
Edun also stated that based on the agreement, diesel will be sold in naira by the Dangote Refinery to any interested offtaker unlike petrol that NNPCL will be in charge of.
READ ALSO: Marketers To Start Lifting Petrol From Dangote Refinery On Sunday
“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 15th September,” the minister stated.
While petrol supply from Dangote Refinery Begins Sunday, NNPCL, according to the statement will commence supply of about 385,000 barrels per day of crude oil to the Dangote Refinery to be paid for in naira.
“In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market to be paid for in naira,” it added.
“Diesel will be sold in naira by the Dangote Refinery to any interested offtaker. PMS will only be sold to NNPC, NNPC will then sell to various marketers for now.”
All regulatory fees to be paid in naira
The minister further stated that all associated regulatory costs including charges by the Nigeria Ports Authority (NPA), and NIMASA, among others, will also be paid for in naira.
“We are also setting up a one-stop shop that will coordinate service provision from all regulatory agencies, security agencies, and other stakeholders to ensure a smooth implementation of this initiative. This will be located in NPA, Lagos,” the minister further stated.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
