Four days ahead of the scheduled September 15, 2024, date for the Nigerian National Petroleum Company Limited (NNPC) to start lifting Premium Motor Spirit (PMS) from the Dangote Refinery, investigations reveal that no commercial agreement has been finalized between both parties.
Sources from NNPC and Dangote confirmed that there is no agreement yet on the quantity and pricing of the PMS to be lifted by the national oil company.
On September 5, 2024, NNPC’s Executive Vice President of Downstream, Adedapo Segun, announced during a live broadcast that the company would begin lifting Dangote petrol on September 15, outlining that pricing would be influenced by foreign exchange rates and market forces. However, on Tuesday, government sources disclosed that no formal paperwork had been signed for the lifting of petrol from the $20 billion Dangote Refinery by NNPC.
The lack of an agreement on terms and conditions, including pricing, suggests that NNPC may not be able to lift petrol on the announced date. A senior Dangote official confirmed that no documentation has been provided by NNPC or the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to facilitate the process, and discussions on pricing are yet to take place.
“For NNPC to pick products in five days, there must be discussions on pricing and other commercial terms, but so far, nothing has been finalized,” the official stated.
Another official from the Ministry of Petroleum Resources corroborated this, adding that while the process is ongoing, no concrete agreements have been reached.
Business adviser Dan Kunle urged President Bola Tinubu to intervene, highlighting the broader implications of petrol supply issues on the country’s socioeconomic stability.
As of Tuesday night, NNPC spokesperson Olufemi Soneye had not responded to inquiries regarding the matter.
