*As 500 trucks mobilised for PMS lifting at Dangote Refinery in Lagos
By OUR REPORTER
Government of the Federal Republic of Nigeria, on Friday September 13, 2024 came with though another contradition but cheering news of the government-controlled Nigerian National Petroleum Corporation Limited (NNPCL) being the sole off-taker of Dangote Refinery’s petrol.
It will be recalled that the government and NNPCL were swift in denying this monopolistic role after Alhaji Aliko Dangote revealed, recently, why his product was yet to be accessed in the oil market.
He said that he was fully prepared with Premium Motor Spirit (PMS) enough to stop importers of fuel from continuing but that he was waiting for relevant authorities of state as the sector which would decide the price, according to him, is still strictly regulated.
He added that NNPCL would be tge off-taker but the government and NNPCL were quick to deny the dual roles of regulating and off-taker as NNPCL particularly said the it is a free market where price would be determined by market forces.
Nigeria woke up into the reality of a self-counter when the government on Friday announced that the loading of the first batch of petrol from the Dangote Refinery would commence on Sunday September 15, 2024.
The government said petrol from the refinery, it recently tagged as producer of substandard products, would only be sold to the Nigerian National Petroleum Company Limited (NNPC Ltd) which will then sell to various marketers in the short term.
It disclosed this in a statement posted on the X handle of the Special Adviser to President Bola Tinubu on Information and Strategy, Mr. Bayo Onanuga.
According to the statement, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed this in his office in Abuja shortly after the meeting of the technical sub-committee on the sale of crude oil to local refineries in naira on Friday.
Mr Edun, represented by the Executive Chairman Federal Inland Revenue Service (FIRS), Zacch Adedeji, announced the completion of all agreements and modalities for the implementation of the Federal Executive Council (FEC) approval on the sale of crude to local refineries in naira and corresponding purchase of petroleum products in naira.
“I am glad to announce that all agreements have been completed and loading of the first batch of PMS from the Dangote refinery will commence on Sunday 15 September. From 1st October, NNPC will commence the supply of about 385k barrels per day (bdp) of crude oil to the Dangote refinery to be paid for in naira.
“In return, the Dangote refinery will supply Premium Motor Spirit (PMS) and diesel of equivalent value to the domestic market to be paid for in naira. Diesel will be sold in naira by the Dangote refinery to any interested offtaker. PMS will only be sold to NNPC, NNPC will then sell to various marketers for now,” Mr Edun said.
He said all associated regulatory costs, the Nigerian Ports Authority (NPA), the Nigerian Maritime Administration and Safety Agency (NIMASA), etc will also be paid for in naira.
“We are also setting up a one-stop shop that will coordinate service provision from all regulatory agencies, security agencies, and other stakeholders to ensure a smooth implementation of this initiative. This will be located in NPA, Lagos.
“We thank everyone for the hard work and patriotism exhibited over the last couple of weeks. We would sincerely like to thank Mr President for championing this novel initiative and would like to assure Mr President that he can count on us to implement his vision,” he said.
In July, the Federal Executive Council directed NNPC Ltd to engage the Dangote refinery and other local refineries to resolve the dispute over the sale of crude oil to them.
The FEC, presided over by President Bola Tinubu, also directed that such crude oil sales to the refineries be made in naira and that the refineries located in Nigeria should also sell their refined products to the Nigerian market in naira.
Since then, according to the Bayo Onanuga’s statement on Friday, the implementation committee chaired by the Minister of Finance and the technical committee have worked intensely with NNPC Ltd and Dangote refinery to fashion out the details of the modalities for the implementation of the FEC approval.
“In a landmark move towards reducing pressure on the Naira, eliminating unnecessary transaction costs, and improving availability of petroleum products, the federal government has successfully initiated the sale of crude to local refineries as well as corresponding purchase of petroleum products in naira,” the statement said.
It said this initiative marks a significant milestone in Nigeria’s journey towards energy self-sufficiency and economic growth.
In another media report by Premium Times it was recalled that Mr. Devakumar Edwin, Vice President of Dangote Industries Limited, said the 650,000 barrels per day Dangote Refinery had begun the processing of petrol.
Edwin explained that the NNPC Ltd, Nigeria’s sole importer, would buy its product exclusively.
Speaking to reporters last Tuesday, the President of Dangote Group, Aliko Dangote, said the petrol refined from the refinery would hit filling stations across the country within 48 hours, depending on the NNPC Ltd.
But NNPC in reaction to a statement that the Dangote Refinery Limited is being undermined by actions of the company, said it is not the sole offtaker of all products from the Dangote Refinery. It said the refinery is free to sell its petrol to any marketer.
The NNPC explained that the Dangote Refinery and any other domestic refinery are free to sell directly to any marketer on a willing buyer, willing seller basis, which is the current practice for all fully deregulated products.
The latest statement by the finance minister, however, shows that NNPC will be the sole off-taker of Dangote’s petrol.
As at the time of filing this report on Saturday, it was gathered that about 500 trucks were being mobilised by the NNPCL preparatory to commencement of PMS from the Dangote Refinery on Sunday
