The Federal Government of Nigeria has allowed petroleum marketers to purchase fuel directly from local refineries, bypassing the Nigerian National Petroleum Company Limited (NNPCL) as an intermediary. This move is part of the ongoing efforts to transition towards a deregulated market for petroleum products.
Wale Edun, Minister of Finance and Chairman of the Naira-Crude Sale Implementation Committee, announced this update on Friday. The announcement follows the committee’s October 10 meeting, which reviewed the progress of the Crude Oil and Refined Products Sales in Naira program.
“With this mechanism now in full operation, along with the commencement of local production, we are well-positioned to transition to a fully deregulated market for all petroleum products,” Edun stated. He further encouraged marketers to engage in direct purchases with refineries based on negotiated commercial terms, which will foster competition and market efficiency.
This development is seen as a strategic move to enhance local fuel distribution and reduce dependency on intermediaries, aiming to benefit consumers over time.
