In a landmark decision that reshapes Nigeria’s petroleum sector, the Federal Government has authorized petroleum marketers to source petrol directly from the Dangote refinery, effectively dismantling the Nigerian National Petroleum Company Limited (NNPC)’s monopoly in fuel distribution.
This policy shift, announced by Minister of Finance Wale Edun on October 11, 2024, is expected to foster competition and improve pricing for consumers.
During a recent review meeting, Edun emphasized the significance of this initiative, stating, “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.”
Marketers can now negotiate directly with the Dangote refinery for their fuel supplies, a move aimed at creating a more competitive marketplace.
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Edun noted, “Moving forward, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC. This will promote competition and improve market efficiency.”
The announcement follows increasing scrutiny over NNPC’s evolving role in the petroleum procurement process. Stakeholders within the industry have expressed optimism that this new structure will yield better market conditions for all Nigerians in the long term.
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