Dangote Refinery Fires Up: Petrol Loading Commences Sept 15

Nigeria Makes Strides in Energy Production and Economic Growth

“I am glad to announce that all agreements have been completed and loading of the first batch of PMS from the Dangote...”

Nigeria takes a significant step towards energy self-sufficiency and economic growth with a new initiative to boost local refining and petroleum production, reducing reliance on imports.

In a significant step towards stabilizing the Naira, reducing transaction costs, and enhancing petroleum product availability, the Federal Government has launched a pioneering initiative to sell crude oil to local refineries and purchase petroleum products in Naira.

According to the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, this groundbreaking move was announced following a meeting of the Technical Sub-Committee on the sale of crude oil to local refineries in Naira, marking a major milestone in Nigeria's economic reform journey.

Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), represented the Minister of Finance, Mr. Wale Edun, as he revealed that all necessary agreements and arrangements have been finalized to implement the Federal Executive Council's directive on selling crude oil to local refineries and buying petroleum products in Naira.

“Since then, the implementation committee chaired by the Hon. Minister of Finance and the technical committee have worked intensely with NNPCL and Dangote Refinery to fashion out the details of the modalities for the implementation of the FEC approval.

“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.

“From 1st October, NNPC will commence the supply of about 385kbpd of crude oil to the Dangote Refinery to be paid for in Naira.”

As part of the agreement, the Dangote Refinery will deliver PMS and diesel of matching value to the domestic market, with settlements to be made 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.”

Additionally, all related regulatory fees, including those owed to the Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), and other regulatory bodies, will also be settled 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,” the Minister said.

This move signifies a crucial step towards Nigeria's aspiration for self-sufficiency in energy production and a stronger economy.