NNPCL Stops Fuel Imports, Buys From Dangote Refinery

The Nigerian National Petroleum Company Limited (NNPCL) has officially ended its reliance on imported petroleum products, now sourcing refined fuel from the Dangote Petroleum Refinery and other domestic refineries. This strategic shift was highlighted by NNPC’s Group Chief Executive Officer, Mele Kyari, during the Nigerian Association of Petroleum Explorationists’ (NAPE) annual conference in Lagos, themed Resolving the Nigerian Energy Trilemma: Energy Security, Sustainable Growth, and Affordability.

This transition comes as some independent petroleum marketers indicate plans to import fuel at prices lower than those of the $20 billion Dangote Refinery. In August, President Bola Tinubu stated that Nigeria was spending around N2 trillion monthly on fuel imports, totaling an annual expenditure of N24 trillion. He highlighted that the introduction of compressed natural gas could save the country a significant portion of these funds, redirecting resources to healthcare and education.

Historically, despite being an oil-rich nation, Nigeria has imported much of its fuel due to insufficient refining capacity. Kyari confirmed that NNPC now sources its products exclusively from local refineries, ending its fuel importation activities. Previously, NNPC held exclusive off-taker rights for fuel from the Dangote refinery, though the government recently permitted other marketers to lift directly from the facility.

Kyari addressed speculations that NNPC was undermining the Dangote refinery by withholding support, emphasizing NNPC’s commitment to supplying crude oil to domestic refineries, including Dangote. He highlighted Nigeria’s “Lamborghini crude,” known for its high quality, as a premium product that commands higher prices globally but suggested a balanced approach to refining domestically to maximize value while considering cost implications.

He also clarified that NNPC is open to selling crude to domestic refineries in naira, contrary to claims that it aimed to hinder the Dangote refinery’s operations. Kyari explained that selling in naira could stabilize foreign exchange pressures by reducing the need for FX in petroleum imports.

Kyari further stressed the importance of energy security, noting that a significant portion of Nigeria’s population lacks access to electricity and clean fuel. He assured that NNPC remains committed to addressing these gaps by supporting energy availability in the domestic market.