By Joke Kujenya
NIGERIA IS set to see a major shift in fuel supply as the Dangote Refinery prepares to start distributing Premium Motor Spirit (PMS).
The first batch of petrol is scheduled to be loaded Sunday, marking a significant milestone in local fuel production.
This was confirmed by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, who spoke through the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, at a press briefing in Abuja.
The government announced that starting October 1, the Nigerian National Petroleum Corporation Limited (NNPCL) will supply 385,000 barrels per day of crude oil to the Dangote Refinery, a transaction that will be conducted entirely in Naira.
In return, the refinery will supply petrol and diesel of equivalent value to the domestic market, also paid for in Naira.
Diesel will be available to any buyer, while petrol will initially be sold only to NNPCL, which will then distribute it to marketers.
Edun emphasized the importance of this agreement, stating it will reduce pressure on the Naira and lower unnecessary transaction costs.
Additionally, all associated regulatory costs, such as those related to the Nigeria Ports Authority (NPA) and Nigerian Maritime Administration and Safety Agency (NIMASA), will also be settled in Naira.
A one-stop coordination center for all regulatory and security services will be set up at NPA Lagos to ensure smooth operations.
The Federal Executive Council (FEC), under the leadership of President Bola Tinubu, approved the sale of crude oil to local refineries in naira, a move designed to increase the availability of petroleum products across Nigeria.
The committee responsible for fleshing out the details of this initiative has now transitioned into an implementation team, operating out of Lagos for the next several months to ensure effective execution.
Edun thanked President Tinubu for spearheading this initiative, adding that Nigerians will soon feel relief as 300 trucks from NNPCL have already arrived at the Dangote Refinery, with over 100 trucks deployed and many more en route.
The loading of petrol is expected to start tomorrow, marking a new era in fuel distribution for Nigeria.
