Nigeria Positions for Full Deregulation of Petroleum Market with Successful Naira Sales Initiative
Nigeria has announced a significant step towards transitioning to a fully deregulated market for all petroleum products, following the successful implementation of the Crude Oil and Refined Products Sales in Naira initiative.
This announcement was made in a press statement by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun on Thursday during the second post-commencement review meeting of the Implementation Committee.
With this mechanism now in full operation, along with the commencement of local production, the Committee highlighted that Nigeria is well-positioned for a complete deregulation of the petroleum market.
The initiative, as directed by the Federal Executive Council (FEC), establishes a robust framework for local production and distribution, ensuring that crude oil and refined products are traded in Naira for local consumption.
The statement read, “The Committee is pleased to report a successful transition of operations in line with the directive issued by the Federal Executive Council (FEC). This directive has established a robust framework for local production and distribution of crude oil and refined products for local consumption in Naira.
“With this mechanism now in full operation, along with the commencement of local production, we are well-positioned to transition to a fully deregulated market for all petroleum products.
“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. We remain confident that, in the long term, these measures will create better market conditions for the benefit of all Nigerians.”
The Committee remains optimistic about the long-term benefits of these measures, asserting that they will foster an environment conducive to economic growth and provide substantial advantages to all Nigerians involved in the petroleum sector.
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