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NNPC buys petrol from Dangote, ends N24trn import bills - BUSINESSDAY
The Nigerian National Petroleum Company (NNPC) Limited has stated that it no longer imports refined petroleum and now sources fuel from Dangote Petroleum Refinery and other domestic refineries.
Mele Kyari, the group chief executive officer of NNPC, announced this at the Nigerian Association of Petroleum Explorationists’ conference in Lagos.
This move follows President Bola Tinubu’s recent statement that Nigeria spends around N2 trillion monthly on fuel imports. Tinubu suggested that transitioning to compressed natural gas (CNG) could save Nigeria this cost, freeing funds for critical investments.
Despite being an oil-producing nation, Nigeria has relied on imported fuel due to limited refining capacity.
However, Kyari has confirmed that “NNPC does not import any product; we are sourcing entirely from domestic refineries.”
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Kyari also addressed rumours that NNPC was undermining the Dangote refinery by refusing to sell crude in naira, stating, “There is no sabotage; buying and selling in naira versus dollars makes no difference to us.” He emphasised that local sourcing will reduce Nigeria’s reliance on foreign exchange and curb inflation pressures from fuel imports.
Kyari further highlighted Nigeria’s broader energy challenges, noting, “Over 50 percent of the population lacks electricity access, and 70 percent lacks access to clean fuel.” He underscored that NNPC is tasked with ensuring domestic energy supply and recently settled a $2.4 billion cash-call debt to international oil companies.
Kyari acknowledged that subsidy removal has allowed NNPC to refocus on its upstream operations, which subsidy expenses had compromised. “This removal lets us sustain energy production affordably,” he said.
In a step toward affordable, cleaner fuel, Kyari revealed that by early 2025, Nigeria will have 12 Compressed Natural Gas (CNG) mother stations and a mini Liquefied Natural Gas (LNG) plant to enhance local power supply and fuel accessibility.
