FG Grants Marketers Direct Access to Dangote Refinery, Ends NNPC Monopoly
In a significant policy shift, the Federal Government has granted petroleum marketers permission to lift petrol directly from the Dangote Refinery, bypassing the Nigerian National Petroleum Company Limited (NNPC). This confirms earlier speculations that the NNPC would no longer serve as the sole off-taker of fuel from the Dangote facility.
Wale Edun, Minister of Finance and Chairman of the Naira-Crude Sale Implementation Committee, announced the development in a statement on Friday. Edun provided updates on the rollout of the crude purchase and product sales transactions denominated in naira.
Edun revealed that the committee, which had held its second post-commencement review meeting on October 10, was pleased with the progress made in implementing the Crude Oil and Refined Products Sales in Naira initiative.
“The committee is pleased to report a successful transition of operations in line with the directive issued by the Federal Executive Council. This directive has established a robust framework for local production and distribution of crude oil and refined products for local consumption in naira,” Edun said.
He highlighted that with the new mechanism fully operational and local production underway, the country is well on its way to a fully deregulated petroleum market. The decision allows marketers to directly purchase Premium Motor Spirit (PMS) from local refineries, including the Dangote Refinery, without NNPC’s intermediary role.
“Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency,” the statement continued.
The minister emphasized that these measures are expected to improve market conditions and create long-term benefits for Nigerians by fostering greater competition and price transparency in the downstream sector.
The move aligns with the government’s broader strategy to ensure domestic energy security and streamline petroleum product distribution. This marks a major shift in Nigeria’s oil sector, which has long relied on NNPC’s control over crude and refined product off-take agreements.
