In efforts to fully deregulate the downstream sector, the federal government says oil marketers can now buy petroleum products directly from the Dangote refinery and other local producers with doing to the Nigerian National Petroleum Company (NNPC) Limited.
Announced in a statement on Friday, the development puts an end to NNPC’s sole distributor role which the national oil firm had held for many years in Nigeria’s oil industry.
It also comes amid reports that the state-owned oil firm had quit its middleman role to the Dangote refinery.
The federal government the sale of crude oil to local refineries — including the Dangote refinery — in naira on October 1, in attempts to address petrol supply challenges occasioned by NNPC’s financial straits.
In the arrangement, the government said the Dangote refinery would sell petrol to only the NNPC in the local currency, noting that interested marketers would have to buy the product from the national oil firm.
Providing updates on the implementation of deal in the statement, Wale Edun, the minister of finance, said the scheme established a plan for domestic production.
The minister spoke during the second post-commencement review meeting of the implementation committee on Thursday, aimed at evaluating the progress of the naira-based crude oil and refined products sale initiative.
“The committee is pleased to report a successful transition of operations in line with the directive issued by the Federal Executive Council (FEC),” he said.
“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, we are 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.”(The Cable)
