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.
