Federal Government Approves Direct Fuel Purchase from Dangote Refinery

The Federal Government has authorized fuel marketers to purchase premium motor spirit (PMS) directly from the Dangote Refinery, bypassing the Nigerian National Petroleum Company Limited (NNPCL).

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced this development, citing the Federal Executive Council’s directive and the implementation of a new naira-based sales mechanism.

The direct purchase model replaces NNPCL’s sole purchasing and distribution role, allowing petroleum product marketers to buy PMS directly from local refineries. This move aims to increase competition, transparency, and efficiency in the downstream oil sector.

The policy shift is expected to enhance fuel supply chain efficiency, promote competition among marketers, and support deregulation of the downstream oil sector. The Dangote Refinery, with its increasing production capacity, is poised to play a crucial role in Nigeria’s fuel supply landscape.