Dangote Refinery to Sell Petrol Only to NNPC, Says Presidential Committee

Abuja, Nigeria – The Presidential Committee on the Sale of Crude Oil and Refined Products has announced that the Dangote Refinery will sell Premium Motor Spirit (PMS), also known as petrol, only to the state oil company, NNPCL. According to a statement made by Zacch Adedeji, a member of the committee and Chairman of the Federal Inland Revenue Service (FIRS), the loading of the first batch of petrol from the Dangote Refinery will commence on Sunday, September 15.

Adedeji emphasized that the agreements have been put in place, and the loading of the first batch of PMS will begin on September 15, 2024. He also revealed that from October 1, NNPC will start supplying crude oil to the Dangote Refinery, which will be paid for in naira. In return, the refinery will supply PMS and diesel of equivalent value to the domestic market, also to be paid for in naira.

The chairman’s statement was later confirmed during a press conference in Abuja by the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun. Adedeji also clarified that interested marketers will have to purchase the product from the national oil firm through its trading company, as part of the agreement reached with the management of Dangote Refinery.

This development contradicts a previous statement by NNPCL, which claimed it does not intend to be the sole distributor of petrol produced by the Dangote refinery. The committee’s announcement marks a significant step forward in the commercialization of the Dangote Refinery, with NNPC set to play a central role in the supply and distribution of refined products.

The move is expected to have a significant impact on the Nigerian economy, with the Dangote Refinery poised to become a major player in the country’s energy sector. As the first phase of the refinery comes online, the country can look forward to increased fuel supplies and reduced reliance on imports.