NEWS
Fuel Scarcity: Dangote Commences Sale Of Petrol To NNPC
In a significant step toward strengthening the Nigerian economy and reducing dependency on foreign exchange, the Federal Government has initiated the sale of crude oil to local refineries and the purchase of petroleum products entirely in Naira.
This landmark policy is aimed at reducing pressure on the national currency, cutting transaction costs, and ensuring a steady supply of petroleum products across the country.
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The Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced the commencement of the initiative at a press briefing in Abuja, following a meeting of the Technical Sub-Committee on the sale of crude to local refineries.
Represented by Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), the Minister revealed that all agreements and frameworks for the project’s rollout had been finalized.
“Under the leadership of Mr. President, the Federal Executive Council (FEC) approved this bold initiative, which allows crude oil to be sold to refineries in Naira, while petroleum products will also be purchased in Naira,” the Minister stated.
“This will alleviate pressure on the Naira, reduce unnecessary transaction costs, and improve the availability of fuel products across the nation.”
As part of the initiative, the Nigerian National Petroleum Company Limited (NNPCL) will begin supplying 385,000 barrels per day of crude oil to the Dangote Refinery starting October 1, 2024.
Payment for these supplies will be made in Naira, a move expected to significantly boost domestic energy production. In exchange, the Dangote Refinery will supply Premium Motor Spirit (PMS) and diesel of equal value to the domestic market, also to be paid for in Naira.
The sale of diesel will be open to any interested offtaker, while PMS will initially be sold exclusively to NNPC for distribution to local marketers.
The Minister also emphasized that all associated regulatory costs from agencies like the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA) would be paid in Naira.
In preparation for smooth implementation, a one-stop service center will be established in Lagos to coordinate the activities of regulatory and security agencies involved in the project.
“This initiative marks a significant milestone in our journey toward energy self-sufficiency. We are grateful for the hard work and patriotism exhibited by all involved over the past few weeks. Mr. President has championed this vision, and we are fully committed to its successful implementation,” Mr. Edun concluded.
This groundbreaking move is expected to enhance Nigeria’s energy independence, fortify its economy, and serve as a blueprint for future initiatives aimed at promoting local industries and reducing foreign exchange burdens.
The Speaker of the House of Representatives, Hon. Abbas Tajudeen, has inaugurated a 21-member Ad-Hoc Committee that will oversee the administration of Rivers State during the six-month State of Emergency declared by President Bola Tinubu.
The committee, which will be led by the House Leader, Rep. Prof. Julius Ihonvbere, with Rep. Ali Isa J.C. serving as Deputy Chairman, was officially unveiled on Tuesday at the National Assembly in Abuja.
According to Speaker Abbas, the creation of the committee demonstrates the National Assembly’s commitment to constitutional order, good governance, and the protection of national unity.
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“This marks a critical milestone in our constitutional mandate and is a reflection of our dedication to transparent governance and the rule of law,” the Speaker declared during the inauguration ceremony.
President Tinubu’s declaration, which came into effect on March 18, was made under Section 305 of the 1999 Constitution (as amended). The President described the situation in Rivers State as a “grave crisis threatening public order” and emphasized the need to safeguard the welfare of the citizens.
Referencing previous cases of emergency rule, including those in Plateau (2004), Ekiti (2006), and the North-East (2013), Abbas reminded lawmakers that the National Assembly had always played a stabilizing role during such interventions.
He clarified that the appointment of Rear Admiral Ibok-Ete Ekwe Ibas (Rtd.) as the caretaker administrator for Rivers State is a stopgap arrangement designed to restore basic governance and maintain public safety.
“The Administrator’s role is limited to maintaining law and order until democratic governance is fully restored,” Abbas said, adding that the administrator would be reporting directly to the National Assembly.
The Speaker urged committee members to carry out their duties with professionalism and neutrality, warning them to avoid partisan conduct.
“You must avoid partisanship and ensure that your actions strictly align with the Constitution,” Abbas stressed. “Beyond oversight, you are also expected to support reconciliation and peacebuilding efforts in Rivers State.”
In response, Committee Chairman Ihonvbere expressed confidence in the team’s ability to carry out the assignment with excellence, citing the members’ collective experience and commitment.
“If I am not wrong, this is probably the strongest ad-hoc committee ever set up since 2019,” Ihonvbere noted.
“With the experience, exposure, and dedication of this team, I assure you on behalf of my colleagues that we will not disappoint the Speaker, the National Assembly, or the Nigerian people.”
He added that the committee would begin work immediately and promised that all activities would be guided by transparency, diligence, and objectivity.
The committee’s responsibilities will include monitoring the implementation of federal directives in Rivers State, ensuring that the caretaker government stays within constitutional boundaries, and submitting regular reports to the House of Representatives.
Former Kano State Governor and 2023 Presidential Candidate of the New Nigeria People’s Party (NNPP), Senator Rabiu Musa Kwankwaso, has condemned the recent spate of deadly attacks in Plateau State, calling on the relevant authorities to ensure that the perpetrators are swiftly brought to justice.
Kwankwaso, in a statement posted on his verified Facebook page, expressed deep sadness over the attack on the Zike community, Kimakpa, in Kwall district of Bassa Local Government Area, which claimed the lives of 51 people and left several properties destroyed.
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The NNPP chieftain described the incident as a tragic addition to the wave of violence that has rocked the state in recent weeks.
He noted that the Zike attack came shortly after over fifty other residents were killed across five communities within the space of a week.
“It is important that Plateau State must not be allowed to become a hotbed of violence and wanton destruction again after the relative peace it has enjoyed in recent years,” he stated.
Kwankwaso called on the Federal Government to rise to its constitutional responsibility of protecting lives and property, while urging residents and stakeholders to embrace peace.
“I extend my condolences to the Government and people of Plateau State. I also urge the authorities to ensure that justice is served by bringing the perpetrators of these heinous crimes to book,” the former governor added.
The recent attacks have continued to fuel concerns over security lapses in the region, as calls for decisive action and lasting solutions grow louder.
The Nigeria Union of Journalists (NUJ), Lagos State Council has commended Dangote Refinery for its consistency in the price reduction of Premium Motor Spirit (PMS) otherwise known as petrol.
The NUJ was reacting to the latest reduction in the ex-gantry loading cost of PMS from ₦880 per litre to ₦865.
Biztellers reports that the Chairman, Nigeria Union of Journalists, Lagos State Council, Adeleye Ajayi, noted that the Dangote Refinery had projected itself as a huge partner in progress to all Nigerians.
The gesture, the Council Chairman said had endeared the business mogul to Nigeria as a saviour of the masses in the face of the present hardship.
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Recall that the Dangote Refinery had announced a reduction of its ex-depot price per liter by N15 ostensibly following reduction in the price of crude oil in the international market.
“I want to emphatically say that the Dangote Refinery is indeed a blessing to all Nigerians. The roll out of petroleum products from Dangote Refinery has indeed changed the game and the fuel market is now liberalized,” he stated.
Urging other industrialists to take a cue from Dangote’s good heart towards Nigerians in the face of present economic hardship, the NUJ boss added, “In the last few months, we are all aware that Dangote Refinery has crashed the price of PMS at different interval and we are very optimistic that such gesture will be extended to other sectors by other industrialists.
“We need more Dangotes in this country so that Nigeria can be great again. Imagine if we have three or four Dangote in other sectors of Nigeria’s economy, Nigeria’s economic progress would have been fastracked.”
In a related development, Ajayi lauded the move by the Federal Executive Council (FEC) which gave an express approval for the full implementation of the suspended Naira-for-Crude agreement with local refiners on Wednesday.
He opined that the move would boost the confidence of the citizenry, as the output was expected to improve the living conditions of Nigerians.
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NUJ Lauds Dangote For Crashing Petrol Price
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