Nigeria has announced a significant step towards a fully deregulated market for all petroleum products following the successful implementation of the Naira Crude Oil and Refined Products Marketing Plan.
The announcement was made in a press statement by the Minister of Finance and Coordinating Economic Affairs, Wale Edun, during the second post-commencement review meeting of the Implementation Committee on Thursday.
With the mechanism now fully operational and local production commencing, the Committee stressed that Nigeria is well-positioned for full deregulation of the oil market.
The initiative, as directed by the Federal Executive Council (FEC), establishes a strong framework for local production and distribution, ensuring that crude oil and refined products are traded in Naira for local consumption. .
“The Commission is pleased to report that the transition of operations in accordance with the directives issued by the Federal Executive Council (FEC) has been successfully completed,” the statement said. The directive established a robust framework for the local production and distribution of crude oil and refined products for local consumption in the Naira.
“With this mechanism fully operational and local production commencing, we are well positioned for the transition to a fully liberalized market for all petroleum products.
“From now on, petroleum products distributors will be able to purchase PMS directly from local refineries without going through the intermediary role of NNPC.
“Market players are encouraged to start purchasing directly from refineries based on mutually negotiated commercial terms, which will foster competition and improve market efficiency. Overall, we are confident that these measures will create a better market environment 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 bring significant benefits to all Nigerians involved in the oil sector.
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