In a major shift towards energy independence, the Nigerian National Petroleum Company Limited (NNPC) has officially halted fuel imports, opting instead to source refined petroleum from domestic refineries, including the recently launched Dangote Refinery. The NNPC’s Group Chief Executive Officer, Mele Kyari, confirmed this development at the Nigerian Association of Petroleum Explorationists’ (NAPE) ongoing conference in Lagos, which explores solutions to Nigeria's energy challenges.
Kyari's announcement marks a new chapter for Nigeria’s energy sector, as the country looks to end its reliance on foreign fuel. This transition is expected to save Nigeria trillions of naira annually. In August, President Bola Tinubu underscored the nation's staggering monthly expenditure of N2 trillion on fuel imports, highlighting the potential of domestic energy production to redirect these funds towards essential sectors like healthcare and education.
Kyari firmly addressed rumors that the NNPC might be hindering the Dangote Refinery’s operations. “We are proud part-owners of Dangote refinery, and we supply crude oil to it and other refineries operating within the country,” Kyari said, clarifying that these partnerships are sound business decisions aimed at securing Nigeria’s energy future.
The NNPC's commitment to local sourcing comes amid pushback from petroleum marketers who claim they can import fuel at lower prices. Nevertheless, the company emphasizes that prioritizing domestic refining, even if at higher production costs, is essential to build resilience in the energy sector. Kyari explained that Nigerian crude, often likened to “Lamborghini fuel” due to its premium quality, has unique value globally but presents a cost challenge domestically. "If Nigeria insists on using solely its premium-grade crude, it must contend with pricing,” Kyari noted.
Kyari also praised the subsidy removal introduced under President Tinubu, which he credited for liberating NNPC's financial resources. Without the cash drain of subsidies, NNPC has successfully cleared a $2.4 billion debt to international oil companies, allowing it to refocus on core upstream activities and joint venture projects.
Looking ahead, the NNPC is rolling out several initiatives aimed at sustainable fuel options and infrastructure expansion. By early 2025, the company plans to establish 12 compressed natural gas (CNG) stations to promote cheaper and cleaner fuel alternatives. These efforts align with the broader vision of achieving full energy security, which Kyari argues goes beyond fuel availability to include expanding access to electricity and clean energy across Nigeria.
In his concluding remarks, Kyari emphasized that the NNPC remains steadfast in supporting President Tinubu’s agenda to stabilize the naira and curb inflation by reducing reliance on foreign fuel imports. “This initiative by the President addresses the biggest source of foreign exchange pressure in our country,” Kyari affirmed, commending the government’s vision for a self-sustaining energy sector.
Tags
News