NNPCL Halts Fuel Imports, Taps Dangote Refinery for Supply
In a strategic shift to bolster Nigeria’s energy security, the Nigerian National Petroleum Company Limited (NNPCL) has announced that it no longer imports refined petroleum products, sourcing exclusively from domestic refineries, notably the Dangote Petroleum Refinery. This marks a historic pivot for the nation, which has long relied on imported fuels despite its status as an oil-producing country.
The announcement was made by NNPCL’s Group Chief Executive Officer, Mele Kyari, at the Nigerian Association of Petroleum Explorationists (NAPE) conference in Lagos. The conference, themed “Resolving the Nigerian Energy Trilemma: Energy Security, Sustainable Growth and Affordability,” underscored this development as a critical step in meeting Nigeria’s energy demands through local production.
“Today, NNPC does not import any product,” Kyari stated. “We are taking only from domestic refineries.” He highlighted the Dangote Refinery as a key partner in this new approach, leveraging the refinery’s production to satisfy national demand.
The Dangote Refinery, which began operations earlier this year, has been positioned as a game-changer in Nigeria’s energy landscape. Located in Lagos, the $20 billion refinery is one of the world’s largest, designed to produce 650,000 barrels per day and capable of meeting both Nigeria’s fuel needs and exporting excess supplies. NNPCL, a part-owner in the refinery, secured an initial off-take arrangement, although the government recently opened access to other marketers.
Responding to criticism that NNPC was reluctant to support local refiners, Kyari emphasised that sourcing fuel from the Dangote Refinery and other domestic operators was a conscious and calculated business decision. “We saw an opportunity to secure a consistent market for at least 300,000 barrels of our production,” he explained. “Oil is now being discovered in unexpected locations worldwide, so securing local supply is vital for long-term market stability.”
This transition also aligns with President Bola Tinubu’s recent comments on the financial burden of fuel imports, which reportedly cost Nigeria an average of N2 trillion monthly. Tinubu’s administration has been vocal about the importance of reducing this expense through alternative energy solutions, such as compressed natural gas, and increasing local refining capacity.
With NNPCL now sourcing its products domestically, the company aims to lower fuel costs and contribute to national economic growth. By partnering with Dangote and other local refiners, NNPC is looking to secure sustainable and affordable energy, marking a significant milestone for Nigeria’s energy independence. LG’s QNED 2024 TV Sets New Standard for Vibrant Displays
