The Federal Government (FG) of Nigeria has granted fuel marketers the approval to lift Premium Motor Spirit (PMS), commonly known as fuel, directly from the Dangote Refinery. This decision bypasses the Nigerian National Petroleum Company Limited (NNPCL), marking a significant shift in the country’s petroleum sector.
The announcement was made on Friday by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy. The approval follows a directive from the Federal Executive Council (FEC) and the implementation of a new naira-based sales system, signaling a fresh era in fuel distribution.
For the first time, fuel marketers will now have direct access to local refineries, enabling them to purchase PMS without going through the NNPCL. Edun, who chairs the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira, described this as a “new direct purchase model,” a significant departure from the previous system.
“This new arrangement opens up the market, allowing marketers to negotiate commercial terms directly with refineries,” Edun explained. “It’s a step towards fostering a more competitive market environment, which will ultimately smoothen the supply chain for petroleum products.”
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Edun also emphasized that the commencement of local PMS production at the Dangote Refinery would be a game changer for Nigeria’s petroleum industry. The move is expected to improve fuel availability, stabilize market conditions, and enhance overall efficiency.
“This transition is expected to stabilize the supply of petroleum products and benefit Nigerians by ensuring consistent availability at competitive prices,” Edun added during the committee’s meeting on October 10th.
To ensure a smooth transition, the minister assured stakeholders of the government’s commitment to providing clarity on the new processes. “We will continue to engage with all stakeholders to ensure a seamless transition and provide clarity on the market changes,” Edun stated.
