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Updated: Dangote refinery to begin petrol supply Sunday, signs agreement with NNPCL

Published

3 weeks ago

September 14, 2024

Updated: Dangote refinery to begin petrol supply Sunday, signs agreement with NNPCL

Relief may have finally come to ease the nationwide fuel scarcity as the Dangote Refinery will on Sunday September 15 start distributing petrol.

This follows an agreement the new refinery just signed with the Nigerian National Petroleum Company Limited (NNPCL).

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed this on Friday the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji.

This was said during a press conference in Abuja where Adedeji represented the minister.

“I am pleased to confirm that all necessary agreements have been finalized, and the loading of the first batch of the PMS (premium motor spirit – petrol) from the Dangote Refinery will begin on Sunday, September 15,” Edun stated.

From October 1, the NNPC Ltd. will provide the Dangote Refinery with approximately 385,000 barrels per day of crude oil, which will be paid for in Naira. In exchange, the refinery will supply petrol and diesel of equivalent value to the domestic market, also to be transacted in Naira.

“Diesel will be available for sale in Naira to any interested buyer, while PMS will be sold exclusively to the NNPC for distribution to other marketers for the time being,” he added.

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All regulatory costs associated with the distribution, including those from the Nigerian Ports Authority (NPA) and Nigerian Maritime Administration and Safety Agency (NIMASA), will also be settled in Naira, according to the minister.

To ensure a smooth implementation of this initiative, a one-stop shop will be established at the Nigerian Ports Authority in Lagos, coordinating service provision from all regulatory and security agencies. Furthermore, the technical committee responsible for developing this initiative will transition to an implementation and monitoring committee based in Lagos for the next three to six months.

Edun reminded that the Federal Executive Council (FEC), under President Bola Tinubu’s leadership, had previously approved the sale of crude oil to local refineries in Naira.

This is aimed at reducing the pressure on the Naira, eliminating unnecessary transaction costs, and improving the availability of petroleum products within the country.

The minister acknowledged the efforts of the committees involved in this project, highlighting their work with the NNPC and Dangote Refinery to finalize the details for implementing the FEC’s approval.

“We sincerely thank President Tinubu for championing this innovative initiative and assure him of our commitment to fulfilling his vision,” he said.

Dangote refinery to begin fuel supply Sunday after deal with NNPCL

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Naira records marginal appreciation, exchanges for N1,700/$

Published

3 hours ago

October 3, 2024

Trends Admin

Naira records marginal appreciation, exchanges for N1,700/$

The Naira yesterday appreciated to N1,700 per dollar in the parallel market from N1,705 per dollar on Monday.
Similarly, the Naira depreciated to N1,669.15 per dollar in the Nigerian Autonomous Foreign Exchange Market, NAFEM.

Data from FMDQ showed that the indicative exchange rate for NAFEM fell to N1,669.15 per dollar from N1,541.94 per dollar on Monday, indicating N127.2 appreciation for the Naira.

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The volume of dollars traded (turnover) in the official market declined by 2.97 percent to $176.45 million from $181.86 million traded on Monday. Consequently, the margin between the parallel market and NAFEM rate narrowed to N30.85 per dollar from N163.06 per dollar on Monday.

Naira records marginal appreciation, exchanges for N1,700/$

Business

FG exempts VAT payment on diesel, gas, electric vehicles

Published

4 hours ago

October 3, 2024

Trends Admin

FG exempts VAT payment on diesel, gas, electric vehicles

Determined to arrest the spate of divestments in the nation’s oil and gas sector, the Federal Government (FG) has announced a new fiscal regime with a wide range of tax exemptions in the industry.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said the fiscal incentives were aimed at revitalizing Nigeria’s oil and gas sector.

The tax exemptions were contained in circulars titled: ‘Value Added Tax (VAT) Modification Order 2024’; and in the ‘Notice of Tax Incentives for Deep Offshore Oil & Gas Production’, which are in accordance with the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.

The VAT Modification Order 2024 introduces exemptions on a range of key energy products and infrastructure including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.

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In addition, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production provides new tax reliefs for deep offshore projects.

The Minister said the concessions were expected to attract new and massive investments into the oil and gas and to revitalise the industry.

He added that the measures were designed to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.

Mr. Edun expressed optimism that the initiative would reposition Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.

He said the reforms were part of a broader series of investment-driven policy initiatives of President Bola Tinubu, in line with Policy Directives 40-42.

Business

NNPCL delivers 48.6m barrels of crude to Dangote Refinery

Published

1 day ago

October 2, 2024

Trends Admin

NNPCL delivers 48.6m barrels of crude to Dangote Refinery

The Nigerian National Petroleum Company Limited has delivered a total of 48.6 million barrels of crude oil to Dangote Petroleum Refinery in the past 10 months.

Details of the deliveries contained in official data on the transaction showed that 3.4 million barrels were supplied in December 2023 while 3.5 million barrels were supplied in February 2024.

A report by Vanguard on Wednesday indicated that 3.3mb, 3.3mb, 3.0mb, 5.1mb, 5.1mb, 4.8mb and 5.6 were supplied to the refinery in March, April, May, June, July, August and September 2024 respectively.

The transaction also recorded 11.7m barrels for October 2024.

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It however quoted sources close to the Dangote Refinery as saying the volume supplied remained low compared to the plant’s installed refining capacity of the 650,000 barrels per day.

The NNPCL has not yet disclosed the crude oil requirements of Nigeria’s refineries, including Dangote refinery in the last quarter (October – December) of 2024.

But in the second quarter (Q2) of 2024, the government put the requirements of all Nigeria’s refineries, including Dangote Refinery, at 597,700 barrels per day, indicating an increase of 114.700 barrels per day, from 483,000 bpd in the first half of the year.

The Q2’24 estimate also indicates that the NNPCL may have booked the crude oil needs of Dangote Refinery at less than 50% of the installed production capacity.