The Federal Government on Friday said it has completed all agreements with the Dangote Refinery and that fuel distribution will commence from Sunday, September 15.
FG, however, noted that petrol will only be sold to the Nigeria National Petroleum Company Limited, NNPCL. The NNPCL will in turn sell to marketers for distribution across the country.
This was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, at a press conference in Abuja on Friday.
The Minister was represented at the conference by the Executive Chairman, Federal Inland Revenue Service (FIRS), Dr Zacch Adedeji.
Addressing the press, Edun stated that from October 1, NNPC Ltd. will commence the supply of about 385kbpd of crude oil to the Dangote Refinery. The payment, of which will be in Naira.
The Minister added that in return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market.
Edun said, “Diesel will be sold in Naira by the Dangote Refinery to any interested off-taker. PMS will only be sold to NNPCL. NNPCL will then sell to various marketers for now.”
He added that all associated regulatory costs (NPA, NIMASA, etc.) would also be paid for in Naira.
“We are also setting up a one-stop shop that will coordinate service provision from all regulatory, and security agencies, and other stakeholders. This is to ensure a smooth implementation of this initiative. This will be located in Nigeria Ports Authority (NPA). Lagos.
“The Technical Committee that worked to flesh out this initiative will transition to an implementation, execution and monitoring committee. They will be working out of Lagos for the next three to six months,” he said.
The Minister added that the initiative would help reduce pressure on the Naira. And also eliminate unnecessary transaction costs and improve availability of petroleum products in the country.
Edun noted that the Implementation Committee chaired by him, and the other Technical Committee had worked intensely with NNPCL and Dangote Refinery. And have fashioned out the details of the modalities for the implementation of FEC approval.
He said, “We would sincerely like to thank President Tinubu for championing this novel initiative. And we assure him that he can count on us to implement his vision.
“I would also like to thank everyone for the hard work and patriotism exhibited over the last couple of weeks.”
source: NAN
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