By Daniel Peters
In a groundbreaking move poised to revolutionize Nigeria’s energy landscape, the Dangote Refinery on Sunday commenced supply of Premium Motor Spirit (PMS) to the Nigerian National Petroleum Corporation Limited, NNPCL.
This bold initiative, championed by President Bola Ahmed Tinubu’s Administration for the country’ s energy self-sufficiency and reduced reliance on imported refined products, started off on a shaky ground as the company and refinery engaged in a war of words over the rate at which the product was sold.
While NNPCL Spokesperson, Olufemi Soneye said the company bought the product at N898 per litre from Dangote, the refinery’s spokesperson, Anthony Chiejina, denounced Soneye as being “mischievous and misleading”, with the transaction, adding that only the technician committee set up by President Bola Tinubu on the sale of crude in Naira can fix the rate and price.
Predictably, the NNPCL, whose officials had earlier warned Nigerians that the product’s availability will be determined by market forces and the forex rate, got the upper hand of the fight it started with the refinery over who controls, regulate and supply the product to the country’ s market, by announcing a new price regime, starting Monday, September 16, 2024.
Soneye in a statement for Monday titled “NNPC Ltd Releases Estimated Pump Prices of PMS from Dangote Refinery, Based on September 2024 Pricing, said:
“The NNPC Ltd has released estimated prices of Premium Motor Spirit (PMS), also known as Petrol (obtained from the Dangote Refinery) in its retail stations across the country.
“The NNPC Ltd also wishes to state that, in line with the provisions of the Petroleum Industry Act (PIA), PMS prices are not set by government, but negotiated directly between parties on an arms length. The NNPC Ltd can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024.
“The NNPC Ltd assures that if the quoted pricing is disputed, it will be grateful for any discount from the Dangote Refinery, which will be passed on 100% to the general public. Attached to this statement are the estimated pump prices of PMS (obtained from the Dangote Refinery) across NNPC Retail Stations in the country, based on September 2024 pricing.”
The announced retail price of petrol nationwide is as follows; Lagos – N950.22 Per Litre, Oyo – N960.22, FCT/Kaduna/Kano – N992.22, Imo/Rivers – N980.22, Sokoto – N999.22 and Borno – 1, 019.22.
Meanwhile, Minister of Finance and Coordinating Minister of the Economy Wale Edun was on ground at the refinery on Sunday to see things for himself.
Speaking at the Dangote Refinery, Edun, praised President Bola Ahmed Tinubu’s visionary leadership in advancing Nigeria’s energy sector.
There, he announced that “from the 1st of October, NNPCL will commence the supply of approximately 385,000 barrels per day of crude oil to the Dangote Refinery, which will be paid for in Naira,.”
Mr Edun called on other domestic refiners to join this endeavor, not only to meet the country’s needs but also to facilitate legal exports to neighboring countries, thereby enhancing foreign exchange revenue and supporting the nation’s economic well-being.
Edun emphasized that this initiative aligns with the President’s vision that no raw materials should leave Nigeria’s shores without adding value.
The Minister also commended Alhaji Aliko Dangote and the Dangote Group for turning this vision into reality through the establishment of the refinery, noting its role in transforming Nigeria’s oil sector while also acknowledging the work of the technical sub-committee responsible for the implementation of crude sales to local refineries in Naira, chaired by the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji.
While in Lagos, the Finance Minister accompanied by the Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji and other members of the Technical Sub-Committee undertook an extensive tour of the refinery’s state-of-the-art facilities, highlighting its capacity to add value locally and reduce reliance on imported refined products.
Mr Edun praised the refinery’s technological advancements and its potential to meet Nigeria’s domestic fuel demands efficiently.
The Finance Minister also witnessed the loading of the first batch of PMS from the Dangote Refinery by NNPCL, marking a significant milestone in the domestic supply of refined petroleum products.
The Ministry’s Spokesman, Mohammed Manga, said in a statement that with the commencement of PMS supply, Nigeria has taken a giant leap towards achieving its energy goals.
“As the country continues to make strides in domestic refining and energy production, the benefits of this initiative will resonate across the economy, from improved foreign exchange earnings to enhanced economic growth”, it noted.
“The successful partnership between the federal government and the private sector, exemplified by the Dangote Refinery, serves as a beacon of hope for Nigeria’s future energy prosperity”, the statement added.
The event symbolizes the first supply of PMS to NNPCL, although the official sale of crude oil for Naira transactions is scheduled to commence on October 1st.
The Federal Executive Council (FEC), under President Tinubu’s leadership, has approved the supply of crude oil to domestic refineries, including the Dangote Refinery, with payments made in Naira.
