The Federal Government has granted petroleum marketers the authority to purchase petrol directly from local refineries, bypassing the Nigerian National Petroleum Company Limited (NNPCL) as an intermediary.
Wale Edun, the Minister of Finance and Chairman of the Naira-Crude Sale Implementation Committee, made this announcement in a statement on Friday, providing an update on the progress of naira-based crude oil sales and product acquisition.
During the second post-commencement review meeting of the Implementation Committee, held on October 10, the team, led by Edun, reviewed the progress of the Crude Oil and Refined Products Sales in Naira program.
“The committee is pleased to report a successful transition of operations in line with the Federal Executive Council’s directive.
This directive has established a solid framework for the local production and distribution of crude oil and refined products, all for local consumption and in naira,” the statement read.
With this framework now fully operational and local production underway, Edun emphasized that the country is poised to transition towards a fully deregulated market for petroleum products.
He added, “Petroleum product marketers can now purchase PMS directly from local refineries without NNPC’s involvement.
Marketers are encouraged to engage in direct negotiations with refineries on commercial terms, fostering competition and enhancing market efficiency.
The government remains optimistic that these reforms will, over time, lead to better market conditions for the benefit of all Nigerians,” Edun concluded.
