Four days before the September 15, 2024, date announced by the Nigerian National Petroleum Company Limited (NNPC) for beginning the lifting of Premium Motor Spirit (PMS) from the Dangote Refinery, investigations by The PUNCH reveal that no commercial agreement has yet been finalized between the two parties.
Sources from both NNPC and Dangote confirmed on Tuesday that an agreement on the quantity and pricing of PMS has not been reached. This information follows a statement made by Adedapo Segun, the Executive Vice President of Downstream at NNPC, during a live television program on September 5, 2024. Segun had announced that NNPC would start lifting Dangote’s petrol on September 15, outlining that foreign exchange rates and market forces would influence the petrol’s price due to market deregulation.
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However, government sources involved in the negotiations disclosed that no formal agreement has been signed regarding the lifting of petrol from the $20 billion Dangote refinery. They pointed out that the necessary terms and conditions for the deal remain unresolved, casting doubt on whether NNPC will actually start lifting petrol on the specified date.
When asked about the upcoming date, a senior official at Dangote refinery, who spoke confidentially due to lack of authorization, confirmed that no agreements on pricing or other details have been made. “For product lifting to occur in five days, discussions on pricing and other commercial terms are essential,” the official explained. “There must be an offer, and the terms and conditions need to be legally structured.”
The official also noted that any lifting of PMS from Dangote refinery would follow the same procedures as with imported products, involving storage in terminals before distribution.
A representative from the Federal Ministry of Petroleum Resources echoed this sentiment, stating that no concrete agreements are currently in place regarding the petrol lifting, though the process is ongoing.
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Dan Kunle, a seasoned business adviser in the oil and gas sector, has urged President Bola Tinubu to address the situation, emphasizing the urgent need to resolve issues related to petrol supply and its impact on the socioeconomic climate.
As of Tuesday night, NNPC spokesperson Olufemi Soneye had not responded to inquiries regarding the matter.
The Crude Oil Refiners Association of Nigeria (CORAN) has suggested that Dangote petrol could be cheaper if the government provides the necessary concessions. CORAN’s Publicity Secretary, Eche Idoko, mentioned that while the exact price is not yet determined, the petrol should not be excessively expensive if government promises are fulfilled. Idoko also advocated for a special pricing arrangement for locally refined products and recommended that the government’s committee on naira crude sales to local refineries finalize its report to guide pricing.
CORAN plans to meet with Dangote to discuss pricing arrangements and will address the press once negotiations are completed. The association aims to ensure that members can operate sustainably while providing high-quality products at reasonable prices for Nigerians.
