NNPCL to supply crude oil to Dangote, limits importation

NNPCL to supply crude oil to Dangote, limits importation

The Nigerian National Petroleum Company (NNPCL) has disclosed a plan to limit importation of petroleum.

Garba-Deen Muhammad, the national oil firm’s spokesperson, disclosed this on Thursday June 8, 2023.

According to him, once the Dangote Refinery begins producing refined petroleum products in late July or early August, it will reduce importation of Premium Motor Spirit, also known as petrol.

“NNPC Limited is bringing in products from outside Nigeria as a matter of necessity, not as a matter of choice. We would have preferred that we produce here, refine here and we sell and provide the energy security that the country needs,” Garba-Deen Muhammad said.

He added, “Because of the circumstances that surround our refineries, we cannot allow the country to be grounded. So we have to buy wherever we can get and sell. So if Dangote products are available, why should we not buy from Dangote?

“There is absolutely no reason. And that is the reason why we are interested in the Dangote Refinery. We are co-owners, shouldn’t we do business with our partners rather than do it with other people?”

Muhammad stated that the NNPCL would supply crude oil to the Dangote Refinery based on a business arrangement between the two parties and in accordance with the international crude pricing.

“NNPC owns 20 percent of that asset and we have an agreement with Dangote that we will supply the refinery with crude. So as soon as Dangote begins to request for crude to pay for it, NNPC is prepared to supply the crude as a business transaction.

“We have been selling crude to different parts of the world for decades, and it is not whether we will sell it to Dangote, for why won’t we sell to Dangote when we are selling to other refineries and countries?” he said.

NNPCL is currently Nigeria’s sole importer of petrol, a role it has held for some years.

Other oil marketers stopped importing petrol because they couldn’t get US dollars at the official rate.

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