THE Nigerian government has taken a significant step towards deregulating the petroleum market by granting permission to petroleum marketers to lift fuel directly from the Dangote refinery, bypassing the Nigerian National Petroleum Company Limited (NNPC). This move confirms speculation that the NNPC will no longer be the sole off-taker of Dangote fuel.
According to Minister of Finance Wale Edun, this change aims to establish a robust framework for local production and distribution of crude oil and refined products for local consumption in naira. The Implementation Committee, chaired by Edun, held its second post-commencement review meeting on October 10 to evaluate the progress of the Crude Oil and Refined Products Sales in naira initiative.
The committee is pleased to report a successful transition of operations in line with the directive issued by the Federal Executive Council. This directive has established a robust framework for local production and distribution of crude oil and refined products for local consumption in naira. With this mechanism now in full operation, along with the commencement of local production, Nigeria is well-positioned to transition to a fully deregulated market for all petroleum products.
Moving forward, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC. Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency.
Edun noted that the government remains confident that, in the long term, these measures will create better market conditions for the benefit of all Nigerians. This development is a significant shift in Nigeria’s fuel distribution system.
