The Federal Government has announced that oil marketers can now directly source petrol from the Dangote Refinery, bypassing the Nigerian National Petroleum Company Limited (NNPC). In an official statement on Friday, October 11, 2024, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, provided an update on the ongoing naira-based crude purchase and product sales initiative. Edun, who also heads the Naira-crude Sale Implementation Committee, highlighted that this new operational framework aligns with directives from the Federal Executive Council.
He explained that this framework is designed to support local production and distribution of crude oil and refined petroleum products, ensuring that these are sold domestically in naira. With local production now active, the government aims to fully deregulate the market for all petroleum products.
Under the new arrangement, petroleum marketers can engage in direct purchases from local refineries without the NNPC acting as a middleman. Marketers will negotiate commercial terms directly with refineries, which the government believes will foster competition and improve market efficiency.
Edun further expressed the government’s confidence that this policy shift will lead to a more competitive and efficient market for petroleum products. The long-term goal is to reduce costs and enhance the supply chain, ultimately benefiting Nigerian consumers by promoting a healthier and more efficient marketplace.