Four days ahead of the September 15, 2024, deadline set by the Nigerian National Petroleum Company Limited (NNPC) for the commencement of petrol lifting from the Dangote Refinery, investigations reveal that no commercial agreement has been finalized between the two entities.
Sources within both NNPC and Dangote confirmed that negotiations regarding the quantity and pricing of Premium Motor Spirit (PMS) have yet to yield a formal agreement.
On September 5, 2024, NNPC's Executive Vice President of Downstream, Adedapo Segun, announced during a live broadcast that the company was prepared to begin lifting petrol from Dangote on the specified date.
He noted that the pricing of petrol would be influenced by foreign exchange rates and market dynamics, emphasizing the deregulated nature of the market.
However, government insiders disclosed that no formal documentation has been executed for the lifting of petrol from the $20 billion Dangote refinery.
They indicated that the necessary terms and conditions for the deal remain unresolved, casting doubt on whether NNPC will be able to commence lifting petrol as planned.
A senior official at Dangote, speaking on condition of anonymity due to lack of authorization, stated, “Currently, there is no documentation from NNPC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) regarding product lifting. No discussions have taken place concerning the September 15 date.”
The official further explained that for product lifting to occur within such a short timeframe, prior negotiations on pricing and other commercial terms would be essential. They noted that the lifting process would mirror the current importation methods, where products are stored in terminals before distribution.
Another source from the Federal Ministry of Petroleum Resources echoed these concerns, stating that no concrete agreements had been reached regarding petrol lifting, although discussions are ongoing.
