Nigeria’s Federal Government has authorized oil marketers to directly source petroleum products from the Dangote Refinery, bypassing the Nigerian National Petroleum Company Limited (NNPC). Finance Minister Wale Edun announced this new policy on October 11, 2024, citing alignment with Federal Executive Council directives.
The Naira-crude Sale Implementation Committee, chaired by Edun, designed this framework to promote local crude production and distribution. Petroleum products will now be sold domestically in naira, supporting the national currency.
With local refining operational, the government plans to fully deregulate the petroleum products market. Under this arrangement, marketers will negotiate commercial terms directly with refineries, fostering competition and market efficiency.
The government expects this policy shift to create a more competitive and efficient market, reducing costs and enhancing the supply chain. Nigerian consumers will ultimately benefit from a healthier marketplace.
