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Nigeria’s Federal Government has taken a bold step towards deregulating the petroleum market, granting petroleum marketers permission to purchase petrol directly from the Dangote refinery. This move effectively bypasses the Nigerian National Petroleum Company Limited (NNPC), ending its monopoly on fuel distribution.

Wale Edun, Minister of Finance and Chairman of the Naira-crude sale implementation committee, announced the policy change, citing the successful transition of the Crude Oil and Refined Products Sales in naira initiative.

“The committee is pleased to announce a successful transition in operations, aligning with the directive from the Federal Executive Council,” Edun stated. “With this mechanism now fully operational and local production underway, we are well-positioned to shift towards a fully deregulated market for all petroleum products.”

Under the new policy, petroleum marketers can purchase Premium Motor Spirit (PMS) directly from local refineries, eliminating NNPC’s role as an intermediary. Edun encouraged marketers to negotiate commercial terms directly with refineries, fostering competition and market efficiency.

This deregulation is expected to:

• Promote competition among marketers
• Reduce costs and increase efficiency
• Enhance market stability
• Benefit Nigerian consumers and the economy

Edun expressed confidence in the policy’s potential, stating, “We are confident that these measures will ultimately lead to improved market conditions for the benefit of all Nigerians.”

The move signals a significant shift in Nigeria’s petroleum landscape, paving the way for a more liberalized and competitive market.

ABUJA BUSINESS REPORTS NEWSPAPER & MAGAZINE