The Federal Government has granted petroleum marketers permission to directly source petrol from local refineries, eliminating the Nigerian National Petroleum Company Limited (NNPCL) as an intermediary. This significant shift was announced by Wale Edun, Minister of Finance and Chairman of the Naira-Crude Sale Implementation Committee, in a statement released on Friday.
Edun provided updates on the progress of crude oil and refined product sales in naira, following the second post-commencement review meeting held on October 10. The meeting assessed the implementation of the government’s directive to enable local production and distribution of petroleum products in naira.
“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,” the statement read.
With this new mechanism fully operational, the government is preparing for a fully deregulated petroleum market. According to Edun, marketers are now encouraged to directly negotiate and purchase Premium Motor Spirit (PMS) from local refineries on mutually agreed commercial terms, a move expected to foster competition and enhance market efficiency.
“Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency,” Edun added.
The government remains hopeful that these measures will gradually improve market conditions and benefit the Nigerian populace, particularly as the country transitions to a deregulated petroleum market.
