Federal Government Announces First Batch of PMS Loading from Dangote Refinery on Sunday,15th September

The Federal Government of Nigeria has officially confirmed that the first batch of Premium Motor Spirit (PMS) will be loaded from the Dangote Refinery on Sunday, 15th September. The Nigerian National Petroleum Company Limited (NNPCL) is overseeing the loading process, signaling a critical step in Nigeria’s goal toward energy independence. The announcement was made by the Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, during a press briefing, who confirmed that all necessary agreements have been concluded to kickstart this monumental initiative.

Dr. Adedeji also emphasized the importance of this move for the country’s economy, especially in reducing reliance on imported petroleum products. The loading of the PMS is part of a broader plan to enhance the local availability of petroleum products, streamline the supply chain, and eliminate unnecessary costs.

Federal Government: Nigeria’s Strides Toward Energy Independence

Nigeria has made significant progress toward achieving energy self-sufficiency, as highlighted by the Federal Government’s decision to sell crude oil to local refineries in Naira. The move is aimed at alleviating pressure on the Naira, reducing foreign exchange costs, and simplifying petroleum transactions within the country. Mr. Wale Edun, the Honourable Minister of Finance and Coordinating Minister of the Economy, confirmed this development, emphasizing the broader economic benefits.

The sale of crude oil in local currency marks a pivotal shift in the Nigerian petroleum sector. It is expected to foster better financial stability and improve the availability of petroleum products for local consumption, further bolstering Nigeria’s economy. This move is also anticipated to lead to significant cost savings in the petroleum supply chain, reducing operational inefficiencies.

Federal Government – Technical Collaboration for Seamless Implementation

In preparation for this initiative, the Technical Sub-Committee has worked closely with the Federal Executive Council (FEC) and other stakeholders to ensure seamless execution. Chaired by the Honourable Minister of Finance, the committee collaborated with the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery to finalize the logistics and operational modalities for the project.

The Technical Committee’s primary goal is to ensure that all regulatory and logistical frameworks are in place, including coordination with relevant agencies like the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA). A one-stop shop will be set up in Lagos to provide services and streamline regulatory processes to ensure smooth implementation of this initiative.

Federal Government – NNPC to Supply Crude Oil in Naira, Dangote Refinery to Sell PMS Locally

From October 1st, the NNPC will begin supplying approximately 385,000 barrels per day (bpd) of crude oil to the Dangote Refinery. This crude oil will be paid for in Naira, further solidifying Nigeria’s commitment to reducing foreign exchange dependency. In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market, all transactions executed in Naira.

Diesel will be available to any interested buyer in the domestic market, while PMS will initially only be sold to the NNPC. The NNPC, in turn, will distribute the PMS to various marketers. The arrangement is designed to ensure equitable distribution of petroleum products across the country and reduce supply bottlenecks.

Regulatory and Operational Support for Efficient Service Delivery – Federal Government

To ensure the smooth operation of this initiative, the Federal Government has put in place a comprehensive regulatory and operational framework. All regulatory costs, including those from NPA and NIMASA, will be settled in Naira, minimizing the need for foreign exchange. This is expected to enhance the cost-effectiveness of the initiative and reduce delays in regulatory clearances.

Additionally, a coordinated service provision unit will be established at the NPA in Lagos, bringing together all regulatory and security agencies under one roof. This unit will oversee the implementation of the initiative, ensuring that all stakeholders work in harmony to deliver on the Federal Government’s vision of energy self-sufficiency.

A Milestone in Nigeria’s Economic Growth

The loading of the first batch of PMS from the Dangote Refinery represents a significant milestone in Nigeria’s journey toward energy independence. This initiative is part of the broader efforts by the administration to reduce reliance on petroleum imports, stabilize the local economy, and create more sustainable growth paths for the country.

In addition, the Federal Government lauded the patriotism and hard work of all stakeholders involved in the project, recognizing the dedication shown by everyone in bringing this vision to fruition. The Honourable Minister of Finance expressed confidence that this initiative would be a major step forward in achieving the country’s economic goals, particularly in enhancing the local supply of petroleum products.