Nigerian Government Ends NNPCL’s Control Over Fuel Distribution
The Nigerian government has authorized petroleum marketers to purchase fuel directly from the Dangote Refinery, marking a significant shift in the nation’s petroleum distribution framework.
This decision effectively ends the Nigerian National Petroleum Company Limited’s (NNPCL) exclusive role as the sole off-taker of Dangote’s refined products.
The Minister of Finance, Wale Edun, announced this development, highlighting that it aligns with the government’s broader strategy to deregulate the petroleum market and foster increased competition.
This move is expected to enhance the availability of petroleum products across the country and potentially stabilize fuel prices by allowing market dynamics to play a more significant role in pricing.
The Dangote Refinery, which commenced operations earlier this year, has a refining capacity of 650,000 barrels per day.
With this new arrangement, independent marketers can now negotiate directly with the refinery for fuel purchases, streamlining the supply chain and reducing reliance on NNPCL as an intermediary.
This policy change is part of the government’s initiative to promote transparency and efficiency in the petroleum sector, aiming to ensure a more consistent and reliable fuel supply for Nigerians.