Nigerian Petroleum Company NNPCL Says Fuel Importation Has Ended, Now Buys From Dangote Refinery
The Nigerian National Petroleum Company Limited (NNPCL) has announced that it has ended its long-standing practice of importing refined petroleum products. Instead, the company is now sourcing its fuel exclusively from the Dangote Petroleum Refinery and other local refineries.
The NNPCL Group Chief Executive Officer, Mele Kyari, shared this development on Monday during the ongoing conference of the Nigerian Association of Petroleum Explorationists in Lagos. Kyari confirmed that the company has ceased importing fuel, opting instead to purchase from domestic refineries. “Today, NNPC does not import any product; we are taking only from domestic refineries,” Kyari was quoted as saying by PUNCH Newspaper.
Kyari elaborated further on the strategy, highlighting the significance of NNPCL’s investment in local refining capacity, particularly as part-owners of the Dangote Refinery. He explained that the decision to source oil locally was driven by a clear market demand, with a guaranteed need for at least 300,000 barrels of crude oil. According to Kyari, this decision was a proactive response to the growing challenge of finding international markets for crude oil, as many new oil reserves are being discovered globally, giving buyers more options.
Kyari emphasized that NNPCL’s choice to supply crude oil to domestic refineries, including Dangote and others, was a well-considered business move. He dismissed the notion that external pressures influenced the decision, stating, “We don’t need to be persuaded; we don’t need anyone to talk to us. We are already doing this.”
Addressing the call for Nigeria to refine more of its crude oil locally, Kyari pointed out that Nigerian crude, often referred to as ‘Lamborghini crude,’ is of high quality and thus commands a higher price. He also noted concerns about international buyers blending high-quality Nigerian crude with less clean fuels to reduce costs.
In related news, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has reached an agreement with the Dangote Group, allowing its members to directly source refined petroleum products from the Dangote Refinery. The National President of IPMAN, Abubakar Garima, shared this update following a meeting of the Association’s National Working Committee. Garima assured that this partnership would help secure a steady and affordable supply of Premium Motor Spirit (PMS) across the nation.
