The Nigerian government on Friday announced that the loading of the first batch of petrol from the Dangote refinery will commence on Sunday, 15 September.
The government said petrol from the Dangote refinery will only be sold to the Nigerian National Petroleum Company Limited (NNPC Ltd) which will then sell to various marketers in the short term.
The government disclosed this in a statement posted on the X handle of the Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, on Friday.
According to the statement, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this in his office in Abuja shortly after the meeting of the technical sub-committee on the sale of crude oil to local refineries in naira on Friday.
Mr Edun, represented by the Executive Chairman Federal Inland Revenue Service (FIRS), Zacch Adedeji, announced the completion of all agreements and modalities for the implementation of the Federal Executive Council (FEC) approval on the sale of crude to local refineries in naira and corresponding purchase of petroleum products in naira.
“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 15 September. From 1st October, NNPC will commence the supply of about 385k barrels per day (bdp) of crude oil to the Dangote refinery to be paid for in naira.
“In return, the Dangote refinery will supply Premium Motor Spirit (PMS) and diesel of equivalent value to the domestic market to be paid for in naira. 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,” Mr Edun said.
He said all associated regulatory costs, the Nigerian Ports Authority (NPA), the Nigerian Maritime Administration and Safety Agency (NIMASA), etc 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.
“We thank everyone for the hard work and patriotism exhibited over the last couple of weeks. We would sincerely like to thank Mr President for championing this novel initiative and would like to assure Mr President that he can count on us to implement his vision,” he said.
In July, the Federal Executive Council directed NNPC Ltd to engage the Dangote refinery and other local refineries to resolve the dispute over the sale of crude oil to them.
The FEC, presided over by President Bola Tinubu, also directed that such crude oil sales to the refineries be made in naira and that the refineries located in Nigeria should also sell their refined products to the Nigerian market in naira.
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Since then, according to the statement on Friday, the implementation committee chaired by the minister of finance and the technical committee have worked intensely with NNPC Ltd and Dangote refinery to fashion out the details of the modalities for the implementation of the FEC approval.
“In a landmark move towards reducing pressure on the Naira, eliminating unnecessary transaction costs, and improving availability of petroleum products, the federal government has successfully initiated the sale of crude to local refineries as well as corresponding purchase of petroleum products in naira,” the statement said.