The Federal Government’s committee, led by Minister of Finance Wale Edun, has reached an agreement with Dangote Petroleum Refinery to roll out Premium Motor Spirit (PMS) in September.
The sale of crude oil to Dangote Refinery and other local refineries will commence on October 1, 2024.
Edun announced this during a meeting with the Implementation Committee, stating, “The meeting reviewed progress on key initiatives, including the upcoming commencement of naira payments for crude oil sales to the Dangote Refinery starting October 1, 2024.”
The Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, reported that “The first PMS delivery from Dangote is expected next month under existing agreements.” The minister emphasized the need for transparency and directed the Technical Sub-Committee to finalize details and prepare a report for the President.
The Federal Executive Council approved President Tinubu’s proposal to halt the sale of crude oil to local refineries in foreign currency, instead offering 450,000 barrels meant for domestic consumption in Naira to Nigerian refineries, using the Dangote refinery as a pilot. This move aims to ensure the stability of the pump price of refined fuel and the dollar-naira exchange rate.
Eche Idoko, Publicity Secretary of the Crude Oil Refiners Association of Nigeria, stated that the supply of crude to local refineries in Naira would “bring down the cost of petrol and strengthen the Naira against the dollar.” Idoko commended Tinubu for listening to the voice of indigenous refiners and pleaded for an executive order on the new directive.
The Dangote refinery has been facing difficulties in accessing crude oil, with the management alleging that foreign oil producers prioritize Asian countries in selling crude produced in Nigeria.
The Arewa Consultative Forum expressed concern over negative debates surrounding the facility, describing it as a “source of national pride.” They praised Aliko Dangote as a “courageous, visionary, and patriotic entrepreneur worthy of commendation and support.”
