News
Dangote refinery begins direct petrol sale to marketers
The Dangote Petroleum Refinery has started supplying Premium Motor Spirit, popularly called petrol, to some oil marketers directly without recourse to the Nigerian National Petroleum Company Limited.
It was gathered that while more oil marketers were intensifying efforts to buy the product directly from the plant, others were importing the commodity, as hundreds of millions of litres of imported PMS should hit Nigeria’s shores in two weeks’ time.
Recall that The PUNCH exclusively reported on Monday that no fewer than four vessels carrying imported PMS arrived at seaports situated along the nation’s borders between Friday, October 18, and Sunday, October 20.
The report cited a document obtained from the Nigerian Port Authority, which showed that about 123.4 million litres of PMS were berthed at two seaports to improve fuel supply nationwide.
The development confirmed an earlier exclusive report by The PUNCH, which disclosed that oil dealers intend to import the commodity to supplement the supply from the $20bn Dangote refinery.
Meanwhile, as major oil marketers import the commodity, their counterparts have started lifting PMS directly from the Lekki-based plant.
A senior official at the refinery said marketers are now allowed to approach the company for direct business transactions on a willing-buyer, willing-seller basis.
“Marketers are already coming to the refinery to lift PMS. They are lifting directly from the refinery, not through a third party,” the reliable official, who spoke in confidence due to lack of authorisation to speak on the matter, stated.
The source, who could not tell the price at which marketers were lifting the product, noted that the oil dealers would not come if the price was not favourable to them.
“We have reached agreements with some of the marketers and more are still ongoing. I don’t know the exact price, but if the price is not good, the marketers would not be coming to us,” the official stated.
He maintained that things are improving, especially as the Federal Government commenced the supply of crude to the facility.
Another official at the facility showed one of our correspondents the trucks of some marketers loading the product directly from the plant without going through NNPC.
“Some of the trucks you saw there today were from marketers purchasing the product directly from Dangote, without recourse to NNPC. So the direct sale has started,” the source stated.
The official explained that due to the high demand for petrol in Nigeria and other countries, the refinery had focused on ensuring 53 per cent of PMS production from its crude oil supplies.
“This could be reviewed in future if the demand for other finished products increases more than the demand for petrol, but right now about 53 per cent of our crude is used for petrol production, while other products account for the remaining percentage,” the official stated.
When asked if marketers had started the direct purchase of petrol from Dangote without recourse to NNPC, one of the notable major marketers in the country replied in the affirmative.
“Yes, everyone is in the process. This was advised that it would happen soon and is a normal business transaction,” the source stated.
But this is contrary to claims from some quarters that the refinery would not be able to sell petrol to marketers unless the deal between it and the NNPC is terminated.
The PUNCH recalls the company had initially announced that the NNPC would be the sole off-taker of its petrol from September 15.
A source at the refinery said this was as decided by the Federal Government. The source said he was taken aback when the Technical Subcommittee on Domestic Sale of Crude Oil in Local Currency announced on October 11 that marketers should now lift petrol directly from the refinery.
“Moving forward, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC. Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency,” the Minister of Finance, Wale Edun, who heads the committee stated in a statement.
As the committee made the announcement, operators said the market had been fully deregulated and they would approach the refinery to apply for PMS lifting.
The PUNCH recalls that the Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, recently led other officials of the association to a meeting with the Vice President of the Dangote Industries, Devakumar Edwin, in Lagos.
Though Fashola did not give much updates about the meeting with Edwin, he appreciated him for the roles he had been playing.
“Edwin received us very well and promised to make things easier for IPMAN to do business with Dangote,” he said.
Fashola added, “We had a fruitful discussion with the group. We have started discussing modalities and other logistics. IPMAN has agreed to work with Dangote. We hope very soon we will start lifting products from the facility.”
However, IPMAN said it could not commence the immediate off-take of the product unless the refinery ends its contract with the NNPC.
But officials at the refinery stated that the refinery was now selling PMS to some marketers.
When the Dangote refinery began the sale of PMS on September 15, the NNPC said it bought the product at the rate of N898/litre; a claim the refinery described as mischievous.
The refinery said the naira-for-crude committee would be the one to announce the price of its PMS. The committee has yet to do so as of October 22.
Credit: PUNCH
The Federal Government has secured fresh commitments from major Chinese power companies and financial institutions to accelerate critical electricity projects and deepen Chinese investment across Nigeria’s power value chain.
The commitments, which cover generation, transmission, equipment manufacturing, renewable energy and grid digitalisation, followed a high-level Nigeria-China power sector mission to Beijing led by the Minister of Power, Joseph Tegbe.
Tegbe disclosed this in Abuja while presenting his scorecard for his first 100 days in office, saying the government was seeking to move beyond conventional contractor arrangements to partnerships that would bring additional capital, technology and technical expertise into the sector.
Among the companies involved are Sinomach, China Machinery Engineering Corporation (CMEC), China National Electric Engineering Company (CNEEC) and TBEA, alongside Chinese financial institutions.
CMEC has reaffirmed its commitment to the 1.9GW Presidential Power Initiative, with the first transmission lines under the programme expected to be delivered in the first quarter of 2027.
CNEEC, the minister said, is advancing financing of $116 million for the Zungeru power evacuation project, while TBEA has proposed a $500 million industrial park for the local manufacture of power equipment.
The Chinese engagements also cover accelerated development of the East-West Super Grid, the Omotosho-Epe transmission line, cable supply and local assembly, a 300MW distributed renewable-energy programme and waste-to-energy pilot projects.
Tegbe said the government was also working with Huawei on grid digitalisation, Supervisory Control and Data Acquisition (SCADA) systems and technical training.
He said the objective was to ensure that foreign partnerships translated into bankable projects and completed infrastructure capable of delivering measurable improvements to the power system.
The minister’s disclosure comes against the backdrop of the Federal Government’s wider effort to restore financial stability to the electricity market, including the mobilisation of ₦1.23 trillion through two bond issuances to settle verified legacy obligations owed to power generation companies.
—₦120bn Annual Leakage Blocked—
Tegbe also disclosed that interventions along the Ikorodu-Sagamu industrial corridor were expected to block energy theft and related revenue leakages estimated at about ₦120 billion annually.
He said improved billing, collection and remittance remained critical to restoring the financial viability of the electricity market and ensuring that resources generated within the sector were available for continued investment.
The minister said the government was also preparing a new phase of investment in transmission infrastructure, including the proposed Transmission Super Grid and the East-West Grid, while exploring bilateral generation-distribution arrangements to improve the utilisation of existing power assets.
—Mambila Project Gets Fresh Impetus—
Tegbe said the government’s recent victory in the long-running arbitration over the Mambila hydropower project had removed a major obstacle to the development of the massive scheme in Taraba State.
An International Chamber of Commerce arbitration tribunal in Paris last week rejected claims totalling about $3.38 billion brought against Nigeria by Sunrise Power and Transmission Company in disputes connected with the project.
The minister said the government was now exploring a pragmatic, potentially phased approach to delivering the Mambila project, alongside smaller hydropower schemes that could serve agricultural and industrial corridors.
He identified the next phase of the government’s power programme as one focused on converting agreements and ongoing reforms into bankable projects, additional transmission capacity and infrastructure capable of supporting future electricity demand.
Among the priorities, he said, were the East-West Grid, the Transmission Super Grid, Mambila and small hydropower projects.
Tegbe said the government would also continue to pursue greater private-sector participation in the electricity market, insisting that new generation capacity must be matched by viable demand and infrastructure.
“An inch of improvement is better than a mile of intentions,” he said, quoting Steve Maraboli as he reaffirmed the administration’s commitment to reforming the power sector under President Bola Tinubu’s Renewed Hope Agenda.
Thousands of members of the All Progressives Congress, APC, in Oyo State, have joined the Allied Peoples Movement, APM.
The former APC members, who came from different local government areas across the state, announced their defection on Monday.
They declared that they had dumped the APC and were ready to work for the APM.
The event was held at Lekan Salami Stadium, Adamasingba, in Ibadan.
Recall that the former APC members were led by Mr Ajiboye Sangogade, a Personal Assistant to the immediate past Minister of Power, Adebayo Adelabu.
Adelabu, who is an indigene of Ibadan, contested the recent APC guber primary election but did not secure the ticket.
Sangogade, a native of Ibadan, said he and his followers would work for the success of the APM in 2027.
The former APC members were received by Governor Seyi Makinde of Oyo State and other chieftains of the APM.
Makinde, while addressing the gathering, advised the APC gubernatorial candidate, Senator Sharafadeen Alli, to channel his efforts toward contesting against the APM candidate, Bimbo Adekanmbi.
The governor vowed that he will defeat President Bola Tinubu to win the forthcoming 2027 presidential election.
He advised the APC candidate to stop criticising his administration.
Makinde said: “God has signed off on what we are doing, and that is why it is raining.
“Today, we are welcoming thousands of APC members into the Allied People’s Movement (APM), and this shows that our victory is only a matter of time. We will win massively in all elections in 2027”.
Troops of Sector 5, Operation ENDURING PEACE (OPEP), Bokkos, have foiled a kidnap attempt and rescued three victims along the Sha-Daffo Road in Daffo District of Bokkos Local Government Area of Plateau State.
In a post by counter-terrorism expert, Zagazola Makama, he said the incident occurred at about 9:40 p.m. on Tuesday, September 22, following a distress report about suspected kidnapping activities along the route.
Zagazola stated that the troops swiftly responded to the report, forcing the kidnappers to abandon their operation and flee into the surrounding area.
He added that the rescued victims were identified as 42-year-old Haruna Rabiu, 25-year-old Mary Joseph and 29-year-old Bridget Gideon.
According to him, the victims reportedly sustained minor injuries and were evacuated to a hospital for medical treatment.
Security forces have commenced efforts to track and apprehend the fleeing suspects.
“The operation is part of ongoing efforts by troops under OPEP to disrupt criminal activities and protect communities and road users across Plateau State,” he said.
Minister Secures International Investment Commitments for Power Projects
2027: Adelabu’s aide leads APC members to join APM in Oyo
Troops repel bandits, halt kidnap attempt, rescue victims in Plateau
-
Economy21 hours agoBREAKING: CBN cuts interest rate to 23 percent
-
News24 hours agoWatch moment FCT minister Wike campaigns for Tinubu, Aduda
-
Politics24 hours ago2027: Anambra Government urges Obi to Quit Presidential Race, Releases Salary Arrears
-
News21 hours agoFCTA to secure fulfilling, rewarding post-service life for retiring workers
-
Politics23 hours agoTinubu can rule Nigeria from anywhere, Presidency hits back at Atiku, Obi
-
News21 hours agoAkpabio pays condolence visit to Bamanga Tukur family says he was a detribalised Nigerian(Photos)
Warning: Undefined variable $user_ID in /home/naijuinz/public_html/wp-content/themes/zox-news/comments.php on line 49
You must be logged in to post a comment Login