The Dangote Refinery is set to begin distributing Premium Motor Spirit (PMS) to the NNPC starting September 15. This initiative follows a deal for the NNPC to supply crude oil in Naira. The refinery aims to enhance the availability of petroleum products while easing pressure on the Naira.
The Dangote Refinery is set to begin distributing Premium Motor Spirit (PMS) exclusively to the Nigerian National Petroleum Corporation (NNPC) starting Sunday, September 15, according to Minister of Finance, Wale Edun. Represented by Dr. Zacch Adedeji, the announcement was made during a press briefing in Abuja. Edun stated that all necessary agreements had been finalized, and the first batch of PMS would be ready for loading. By October 1, the NNPC is expected to supply 385,000 barrels per day (bpd) of crude oil to the Dangote Refinery, with payments conducted in Naira. The refinery will supply PMS and diesel of equivalent value to the domestic market.
While diesel will be available to all off-takers, PMS distribution will initially be limited to the NNPC, which will handle further sales to marketers. Edun highlighted that all regulatory costs will also be paid in Naira, with plans for a one-stop coordination hub in Lagos to streamline regulatory and security procedures. He also mentioned that the technical committee responsible for the project will oversee implementation and monitoring for the next three to six months. The initiative, backed by the Federal Executive Council, is expected to ease pressure on the Naira, reduce transaction costs, and ensure a stable supply of petroleum products across the country.
This comes after months of preparation and discussions, with the Dangote Refinery finally commencing petrol refining earlier this month.
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