In a move aimed at boosting local production of petroleum products, the Nigerian National Petroleum Company Limited (NNPCL) has announced plans to supply an additional 17.8 million barrels of crude oil to the Dangote Refinery. This was revealed by Mr. Adedapo Segun, Vice President, Downstream at NNPCL, during an interview on Arise News Morning Show earlier today.
According to Mr. Segun, 6.8 million barrels of crude oil, delivered in seven cargoes, will be supplied to the refinery in September, with an additional 11 million barrels set to arrive in November. This fresh supply follows an earlier delivery of 30 million barrels, which facilitated the commencement of the refinery's operations.
The Dangote Refinery, a crucial component of Nigeria’s effort to achieve energy self-sufficiency, recently confirmed that it is now ready to release Premium Motor Spirit (PMS) to the market. Speaking at a press briefing earlier this week, the Group Chief Executive, Aliko Dangote, shared that the refinery is fully operational and prepared to distribute its products.
During the interview, Mr. Segun also addressed concerns regarding the NNPCL’s role as the sole importer of PMS, attributing it to challenging market conditions. He explained that forex shortages and the current pump price, which remains below the landing cost, have made it difficult for independent marketers to import products.
Contrary to rumors suggesting that the NNPCL would act as the exclusive off-taker for Dangote Refinery's products, Mr. Segun clarified that the refinery will be free to sell to other marketers when market conditions improve. However, he emphasized that for now, the NNPCL will continue to act in the public interest, serving as the provider of last resort, as mandated by the Petroleum Industry Act (PIA).
This supply of crude oil is part of the Federal Government's broader push to strengthen domestic petroleum production and reduce reliance on imports, a move expected to bring long-term benefits to the country’s economy.
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