In preparation for Dangote Refinery’s scheduled petrol loading on Sunday, September 15, 2024, NNPC Ltd. has been mobilising trucks to the refinery’s fuel loading gantry in Ibeju-Lekki. By Saturday afternoon, over 100 trucks had been deployed, with hundreds more on the way.
The Federal Government had earlier announced that the first batch of Premium Motor Spirit (PMS) would be loaded from the Dangote Refinery on Sunday, September 15, under the supervision of the Nigerian National Petroleum Company Limited (NNPCL).
Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, represented by Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), confirmed the development on Friday in Abuja.
Following the Technical Sub-Committee meeting on the sale of crude oil to local refineries in Naira, Edun stated that all agreements and arrangements for the Federal Executive Council (FEC) approval had been finalised.
The FEC had previously approved the sale of crude oil to local refineries, with the corresponding purchase of petroleum products in Naira.
According to Edun, this initiative is aimed at reducing pressure on the Naira, cutting unnecessary transaction costs, and improving the availability of petroleum products across the country.
“The implementation committee, chaired by the Hon. Minister of Finance, alongside the technical committee, has worked intensely with NNPCL and the Dangote Refinery to finalise the details.
“We are pleased to announce that the loading of the first batch of PMS will begin on Sunday, September 15,” Edun said.
Mohammed Manga, Director of Information and Public Relations, in a statement obtained by Advisors Reports, stated that NNPCL would begin supplying approximately 385,000 barrels of crude oil per day to the Dangote Refinery starting from October 1, with payment made in Naira.
According to Manga, the Dangote Refinery will supply petrol and diesel of equivalent value to the domestic market, with payment also in Naira.
He added, “While diesel will be sold to any interested buyer, PMS will be exclusively sold to NNPCL for distribution to various oil marketers.
“All associated regulatory costs, including those from the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), will also be settled in Naira.”
Advisors Reports further confirmed that NNPCL had mobilised 500 trucks to the facility, enabling the transport of about 25 million liters of PMS in preparation for this development.
Additionally, NNPCL has reportedly raised a $100 million Letter of Credit (LC) to facilitate payment to the Dangote Refinery for the product, since the crude oil used for this initial batch was paid for in dollars.
