DANGOTE REFINERY AGREE ON SEPTEMBER PETROL ROLLOUT
Background and Agreement:
- The Federal Government of Nigeria formed a committee to ensure that crude oil sales to local refineries would be conducted in naira rather than foreign currency. This committee has now reached an agreement with the Dangote Petroleum Refinery to begin the rollout of Premium Motor Spirit (PMS), commonly known as petrol, in September 2024.
Sale of Crude Oil:
- Starting from October 1, 2024, crude oil sales to Dangote Refinery and other local refineries will be conducted in naira. This move is intended to stabilize the pump price of refined fuel and the naira-dollar exchange rate.
Role of Key Stakeholders:
- Various stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Central Bank of Nigeria (CBN), Nigerian Upstream Petroleum Regulatory Commission, and African Export-Import Bank, have been assigned key roles to ensure the smooth implementation of this transition.
Expected Rollout:
- The first batch of PMS from Dangote Refinery is expected to be delivered in September 2024, as per existing agreements. Significant production increases from the Port Harcourt and Dangote Refineries are anticipated from November 2024.
Transparency and Oversight:
- The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, emphasized the need for transparency in the process. He instructed the Technical Sub-Committee to finalize details and prepare a report for President Tinubu to ensure that the directives are implemented on schedule.
Previous Government Actions:
- On July 29, 2024, the Federal Executive Council approved a proposal from President Tinubu to stop selling crude oil to local refineries in foreign currency. The plan involves selling 450,000 barrels of crude oil, meant for domestic consumption, in naira to Nigerian refineries, with the Dangote refinery serving as the pilot.
Challenges and Support:
- The Dangote Refinery, along with other domestic refiners, has faced challenges in accessing crude oil for their operations. The International Oil Companies (IOCs) were reportedly making it difficult for the refinery to procure crude oil, insisting on selling through their foreign agents.
Public Support:
- The Arewa Consultative Forum (ACF) has expressed its support for the Dangote Refinery, describing it as a source of national pride. The forum praised Aliko Dangote for his efforts in establishing the refinery and called for more support to ensure its success.
Background and Agreement:
- The Federal Government of Nigeria formed a committee to ensure that crude oil sales to local refineries would be conducted in naira rather than foreign currency. This committee has now reached an agreement with the Dangote Petroleum Refinery to begin the rollout of Premium Motor Spirit (PMS), commonly known as petrol, in September 2024.
Sale of Crude Oil:
- Starting from October 1, 2024, crude oil sales to Dangote Refinery and other local refineries will be conducted in naira. This move is intended to stabilize the pump price of refined fuel and the naira-dollar exchange rate.
Role of Key Stakeholders:
- Various stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Central Bank of Nigeria (CBN), Nigerian Upstream Petroleum Regulatory Commission, and African Export-Import Bank, have been assigned key roles to ensure the smooth implementation of this transition.
Expected Rollout:
- The first batch of PMS from Dangote Refinery is expected to be delivered in September 2024, as per existing agreements. Significant production increases from the Port Harcourt and Dangote Refineries are anticipated from November 2024.
Transparency and Oversight:
- The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, emphasized the need for transparency in the process. He instructed the Technical Sub-Committee to finalize details and prepare a report for President Tinubu to ensure that the directives are implemented on schedule.
Previous Government Actions:
- On July 29, 2024, the Federal Executive Council approved a proposal from President Tinubu to stop selling crude oil to local refineries in foreign currency. The plan involves selling 450,000 barrels of crude oil, meant for domestic consumption, in naira to Nigerian refineries, with the Dangote refinery serving as the pilot.
Challenges and Support:
- The Dangote Refinery, along with other domestic refiners, has faced challenges in accessing crude oil for their operations. The International Oil Companies (IOCs) were reportedly making it difficult for the refinery to procure crude oil, insisting on selling through their foreign agents.
Public Support:
- The Arewa Consultative Forum (ACF) has expressed its support for the Dangote Refinery, describing it as a source of national pride. The forum praised Aliko Dangote for his efforts in establishing the refinery and called for more support to ensure its success.