The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, announced that the Dangote Refinery will commence the distribution of Premium Motor Spirit (PMS) on Sunday, September 15. This development follows the completion of all necessary agreements, according to Edun, who was represented by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, during a press conference in Abuja on Friday.
Edun revealed that the Nigerian National Petroleum Company (NNPC) will start supplying approximately 385,000 barrels per day of crude oil to the Dangote Refinery from October 1, with payments to be made in Naira. In exchange, the Dangote Refinery will provide PMS and diesel of equal value for the domestic market, also to be paid for in Naira.
“Diesel will be sold in Naira by the Dangote Refinery to any interested buyers, while PMS will exclusively be sold to NNPC, who will then distribute it to various marketers,” Edun stated.
He also highlighted that all associated regulatory fees, including those from the Nigerian Ports Authority (NPA) and Nigerian Maritime Administration and Safety Agency (NIMASA), will also be paid in Naira.
To ensure smooth implementation of this initiative, the government will establish a one-stop shop at the NPA in Lagos, coordinating services from regulatory bodies, security agencies, and other stakeholders. Additionally, a technical committee that designed the initiative will transition into an execution and monitoring body, based in Lagos, and will oversee operations for the next three to six months.
The announcement comes after the Federal Executive Council (FEC), under President Bola Tinubu’s administration, approved the sale of crude oil to local refineries in Naira and the corresponding purchase of petroleum products in Naira. The initiative is aimed at reducing pressure on the Naira, cutting unnecessary transaction costs, and ensuring improved availability of petroleum products in the country.
Edun, who chairs the presidential committee on the sales of crude oil and refined products for domestic consumption in Naira, emphasized that the implementation committee has been working diligently with NNPCL and the Dangote Refinery to finalize the details of the plan.
