FG Confirms Dangote Refinery Will Only Sell Petrol to NNPC

FG Confirms Dangote Refinery Will Only Sell Petrol to NNPC

The Federal Government has clarified that refined petrol from the Dangote Refinery will be exclusively sold to the Nigerian National Petroleum Company Limited (NNPC), contrary to claims of an open market arrangement.

Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, reaffirmed the decision during a meeting of the Technical Sub-Committee on the sale of crude oil to local refineries in Naira. Represented by Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), the minister emphasized that while diesel from the refinery can be sold to any willing buyer in Naira, petrol (PMS) will be sold solely to the NNPC.

This statement follows an earlier clarification by NNPC, through its Chief Corporate Communications Officer, Olufemi Soneye, who stated that the company had no intention of becoming the sole off-taker of PMS from Dangote Refinery. Soneye mentioned that refined products could be sold to marketers on a “willing buyer, willing seller” basis.

However, Edun insisted that agreements have been finalized for the sale of crude to local refineries in Naira, as approved by the Federal Executive Council (FEC) under President Tinubu. The plan is expected to ease pressure on the Naira and improve petroleum product availability in Nigeria.

The first batch of PMS from the Dangote Refinery is set to be delivered to the NNPC starting on September 15, with crude oil supply to the refinery commencing on October 1. All associated regulatory costs will be paid in Naira, with the government establishing a one-stop shop in Lagos to ensure seamless coordination between regulatory agencies and stakeholders.