The Nigerian National Petroleum Company Limited (NNPC) remains the exclusive off-taker of Premium Motor Spirit (PMS), commonly known as petrol, from the Dangote Petroleum Refinery.

This arrangement persists despite the recent directive from the Federal Government allowing other oil marketers to start loading PMS directly from the refinery.

Oil marketers reported on Wednesday that NNPC would continue as the sole off-taker from the $20 billion Lekki-based facility until the termination of its agreement with the Dangote refinery for PMS supply.

However, no timeline for the end of this agreement was provided by either NNPC or Dangote refinery officials.

On October 11, 2024, the Federal Government announced through the finance ministry that oil marketers were now permitted to negotiate PMS purchases directly from the Dangote refinery without involving NNPC, with the intent to foster competition and enhance market efficiency.

Nonetheless, following a meeting on October 15, 2024, between members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and Dangote refinery representatives, it was clarified that NNPC remains the exclusive off-taker until its agreement with Dangote concludes.

An IPMAN notice issued in the Western Zone confirmed, “Until and when the agreement is terminated by either party, the direct sales will still be on hold.”

Major oil marketers corroborated that they continue to procure products from the Dangote refinery under the existing NNPC-Dangote deal, using a Proforma Invoice (PFI) system.

The naira’s value declined in the parallel market on Wednesday, trading at “1,705/dollar,” as reported by Bureau De Change operators in Lagos and Abuja.

According to The Punch, Aliyu Sani, BDC operator in Lagos, said that he sold dollars for “N1705” and bought at “1,695/$.” Meanwhile, in Abuja, the rate was slightly lower at “N1,700.”

Currency trader Suraju Ajao stated that he sold dollars at “1700/$” and bought them at “1,690/$.”

On the Nigerian Autonomous Forex Exchange Market, housed on the FMDQ Securities platform, the naira closed at “1659.69/$,” showing a “0.04 per cent” drop from the “1658.97/$” exchange rate recorded on Tuesday.

In the official market, the naira’s high reached “1,682/$,” while its low was “1,562.97/$.”

Daily turnover declined from “$217.86 million” on Tuesday to “$177.10 million.”

Earlier in the week, the naira hit a new low, closing at “1,700/dollar” on Monday, a “0.29 per cent” drop from “N1,695 to the dollar” last Friday.

The World Bank recently ranked the naira among the “worst-performing currencies in Sub-Saharan Africa in 2024.”

By August, the naira had depreciated by around “43 per cent” year-to-date, making it one of the weakest currencies in the region alongside the Ethiopian birr and South Sudanese pound.

This decline is due to increased demand for U.S. dollars in Nigeria’s parallel market, limited dollar inflows, and slow foreign exchange disbursements from the central bank.

Lagos State Governor, Babajide Sanwo-Olu, has expressed his intention to raise the minimum wage for state government workers to N100,000.

Sanwo-Olu shared this during an appearance on Channels Television’s programme, “Politics Today,” where he featured as a special guest on Wednesday.

The governor also announced that the state government, in agreement with organised labour, has set a new minimum wage of N85,000, following the national negotiation outcome of N70,000.

He emphasized that the state’s decision to pay N85,000 was based on its financial capacity rather than a desire to surpass other states.

He stated: “I am glad to let you know that the minimum wage for Lagos, which we conversed and discussed with our union, is N85,000 today.

“It is not a competition.

“So I am not going to say we are paying more than some other people.

“It is a function of affordability and it is a function of capacity, but we know too well that when people live in Lagos, Lagos has a premium in terms of even the cost of living.

“We are fully aware.”

Sanwo-Olu noted that earlier in the year, the state had increased workers’ salaries. He expressed his desire to further increase the minimum wage to N100,000 by January 2025

He added: “We actually increased salaries earlier in the year and deserved it for our staff and we will continue to do that.

“I would like to come back to you in January to say I have been able to increase the minimum wage of Lagos to N100,000.

“Not because I want to make anybody look bad.

“It is really because I want my people to have a living wage.

“I want them to really be able to know that the government is working for them.”