The West African country's government eliminated state-owned oil company NNPC's exclusive purchasing rights, allowing local traders to purchase petrol directly from the Dangote Oil Refinery, which marked a shift to a more competitive market environment.
Finance Minister Adebayo Olawale Edun explained that the new system allows marketers to negotiate directly with refineries, streamlining the supply chain.
The move comes after NNPC raised fuel prices by over 15% to reflect market rates, marking the end of a decades-long fuel subsidies program. While the move will free up government finances previously allocated to subsidies, it is expected to have a direct impact on consumers.
Earlier, the government approved the sale of crude oil to the Dangote refinery in local currency, aiming to facilitate the transition to a fully deregulated market, with the refinery fully meeting the country's fuel needs.