The Nigerian Ports Authority (NPA) has announced the start of its coordination efforts for the sale of crude oil to Dangote Refinery.
This move comes after a directive from the federal government to facilitate the sale in naira.
Abubakar Dantsoho, the managing director of NPA, made this announcement during an inter-agency meeting held at the NPA headquarters in Lagos.
The meeting aimed to discuss the establishment of a one-stop-shop (OSS) for stakeholders involved in this initiative.
According to Dantsoho, the OSS is crucial for ensuring smooth operations in the sale of crude oil.
He stated, “We are poised to collaborate and provide the efficiencies necessary to deliver on this national imperative of ensuring the availability of premium motor spirit (PMS) and other petroleum products.”
This collaboration will involve various regulatory, security, and operational agencies working together to streamline the process.
The Federal Government had approved the sale of crude oil to the Dangote Refinery in naira during a Federal Executive Council (FEC) meeting on July 29.
President Bola Tinubu directed the Nigerian National Petroleum Company (NNPC) to oversee the sales process.
The government also announced that the sales would officially begin on October 1, 2024.
Eche Idoko, the publicity secretary of the Crude Oil Refinery-owners Association of Nigeria (CORAN), indicated that the sales will initially focus on refineries producing petrol.
The OSS team consists of representatives from various organizations.
These include the Nigerian Navy, NNPC Limited, Dangote Group, Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS), Nigerian Maritime Administration and Safety Agency (NIMASA), and the Nigeria Drug Law Enforcement Agency (NDLEA).
Maureen Ogbonna, from the NPA’s marine and operations directorate, has been appointed as the committee’s focal person.
The decision to sell crude oil in naira has significant economic implications for Nigeria.
By facilitating transactions in the local currency, the government aims to strengthen the naira and reduce the pressure on foreign exchange reserves.
This move is expected to make the domestic market more competitive, potentially benefiting consumers through lower prices for petroleum products.
The coordination of crude oil sales is also seen as a national imperative.
With Dangote Refinery being one of the largest in the country, efficient crude oil supply is essential for its operations.
By ensuring a consistent supply, the government hopes to enhance the refinery’s capacity to produce premium motor spirit (PMS) and other essential petroleum products.
This, in turn, can lead to increased availability of these products in the Nigerian market.
Dantsoho expressed optimism that the OSS would enhance communication and collaboration among the various agencies.
“We are setting up a one-stop-shop that will coordinate service provision from all regulatory, and security agencies, and other stakeholders to ensure a smooth implementation of this initiative,” he added.
