FG Approves Direct Petrol Lifting from Dangote Refinery, Bypassing NNPC

The federal government has approved a new system allowing petroleum marketers to obtain petrol directly from the Dangote Refinery, bypassing the Nigerian National Petroleum Company (NNPC) Limited.

In a statement on Friday, Wale Edun, the Minister of Finance and Chairman of the Naira-Crude Sale Implementation Committee, shared updates on the progress of crude purchases and refined product sales conducted in naira.

Edun explained that the implementation committee held its second post-commencement review meeting on 10th October, where it evaluated the success of the Crude Oil and Refined Products Sales in Naira initiative.

“The committee is pleased to report a smooth transition to the new framework, following the Federal Executive Council’s directive. This new model creates a robust system for the domestic production and distribution of crude oil and refined products, all sold in naira for local consumption,” the statement said.

Edun highlighted that with the system now fully in place and local production in progress, Nigeria is set to move towards a fully deregulated petroleum market.

“Petroleum product marketers can now purchase Premium Motor Spirit (PMS) directly from local refineries, eliminating the need for NNPC as a middleman. This enables direct negotiations between marketers and refineries, encouraging competition and enhancing market efficiency,” he added.

The government expressed optimism that these steps would eventually create a more favourable market environment, ultimately benefiting Nigerians.