By ADEMOLA TIJANI
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has announced that the Dangote Refinery is set to begin distributing Premium Motor Spirit (PMS) on Sunday (today, September 15.
Speaking at a news conference in Abuja on Friday, Edun was represented by Dr. Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS).
“I am pleased to announce that all necessary agreements have been finalized, and the first batch of PMS from the Dangote Refinery will begin loading on Sunday, September 15,” Edun stated.
He further explained that, starting from October 1, the Nigerian National Petroleum Company Limited (NNPCL) will supply around 385,000 barrels per day (bpd) of crude oil to the Dangote Refinery, which will be paid for in Naira.
In return, the refinery will provide PMS and diesel of equivalent value to the domestic market, with payments also made in Naira.
“Diesel will be available for purchase in Naira by any interested buyers, while PMS will be sold exclusively to NNPCL, which will then distribute it to various marketers for the time being,” he added.
Edun also noted that all regulatory costs, including those from agencies like the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), will also be settled in Naira.
To ensure the smooth execution of this initiative, a one-stop shop is being set up at the NPA in Lagos to coordinate services from regulatory and security agencies, as well as other stakeholders. This center will oversee the implementation of the project.
Additionally, Edun revealed that the technical committee responsible for developing the initiative will transition into an implementation, execution, and monitoring committee, based in Lagos, for the next three to six months.
Recalling the Federal Executive Council’s (FEC) approval under President Bola Tinubu, Edun emphasized that the decision to sell crude oil to local refineries in Naira, and to purchase petroleum products in Naira, is expected to reduce pressure on the Naira, eliminate unnecessary transaction costs, and improve the availability of petroleum products in the country.
The minister highlighted that the implementation committee, chaired by himself, alongside other technical experts, worked closely with NNPCL and the Dangote Refinery to finalize the modalities for executing the FEC’s approval.
