The Federal Government will commence the loading of PMS from the Dangote Refinery on September 15th, marking a milestone in Nigeria's energy independence
The Federal Government of Nigeria has announced that the loading of the first batch of Premium Motor Spirit (PMS) from the Dangote Refinery will commence on Sunday, September 15th. The Nigerian National Petroleum Corporation (NNPC) will oversee the operation. This marks a significant step towards Nigeria’s energy independence and economic growth.
Dr. Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), made the announcement. He stated, “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, 15th September.”
Crude Oil Sales and Purchases Now in Naira
This groundbreaking move is part of the Federal Government's broader initiative to sell crude oil to local refineries in Naira and to ensure that petroleum products are also purchased in local currency. The policy aims to reduce the pressure on the Naira, eliminate unnecessary transaction costs, and enhance the availability of petroleum products in the domestic market.
Photo credit: Aliko Dangote business tycoon
Finance Minister Wale Edun, through a statement by Adedeji, confirmed that all necessary agreements for implementing the Federal Executive Council's (FEC) approval for this initiative have been finalized. He remarked, "Recall that the FEC under the leadership of Mr. President approved the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira."
Strengthening Nigeria’s Fuel Supply
From October 1st, the NNPC will begin supplying around 385,000 barrels of crude oil per day to the Dangote Refinery, which will in turn supply PMS and diesel to the domestic market, both paid for in Naira. “From 1st October, NNPC will commence the supply of about 385kbpd of crude oil to the Dangote Refinery to be paid for in Naira.
In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market to be paid for in Naira,” Adedeji further explained.
Diesel will be sold in Naira to any interested party, while PMS will initially be sold only to NNPC, which will then distribute it to marketers. All associated regulatory costs will also be settled in Naira.
Adedeji concluded, “This initiative marks a significant milestone in Nigeria's journey towards energy self-sufficiency and economic growth.”
