With only four days remaining until the September 15, 2024, deadline set by the Nigerian National Petroleum Company Limited (NNPC) to begin lifting Premium Motor Spirit (PMS) from the Dangote Refinery, sources reveal that no commercial agreement has been finalized between the two parties.
Despite previous announcements by NNPC’s Executive Vice President of Downstream, Adedapo Segun, stating that the national oil company would start lifting petrol from the $20 billion Dangote Refinery on the set date, insiders from both NNPC and Dangote confirmed that discussions on the quantity, pricing, and other terms of the deal are still ongoing.
A senior official at Dangote Refinery disclosed that as of now, "no documentation from NNPC and NMDPRA (Nigerian Midstream and Downstream Petroleum Regulatory Authority) on product lifting" has been finalized. The official emphasized that without an agreement on pricing and other commercial terms, it is unlikely that NNPC will begin lifting petrol on the announced date.
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Similarly, sources within the Federal Ministry of Petroleum Resources corroborated this position, indicating that while discussions are ongoing, "nothing concrete has been agreed on right now."
The uncertainty has prompted industry experts, including seasoned business adviser Mr. Dan Kunle, to urge President Bola Tinubu to intervene and address the concerns surrounding petrol supply, especially given the ongoing socio-economic challenges in the country.
Meanwhile, the Crude Oil Refiners Association of Nigeria (CORAN) weighed in on the situation, suggesting that the price of Dangote’s petrol might be more competitive if the Federal Government fulfills its promised concessions. CORAN’s Publicity Secretary, Eche Idoko, noted that while the association has not yet determined the exact pricing, they are optimistic that Dangote’s products will be reasonably priced if the government supports local refining.
CORAN also urged the Federal Government to consider the broader implications of its decisions, emphasizing that the policies should benefit not only Dangote but also other existing and prospective local refiners.
As the September 15 deadline approaches, the industry remains in anticipation, with both NNPC and Dangote Refinery yet to reach a definitive agreement that could shape the future of Nigeria’s petroleum market.
