NNPC to supply Dangote refinery 17.6m barrels of crude oil in Sept, Oct
The Nigeria National Petroleum Company Ltd (NNPCL) has stated that it will supply the Dangote refinery a total of 17.6 million barrels of crude oil between September and October this year.
The Executive Vice President of the NNPC, Mr. Adedapo Segun stated this in an interview on Arise TV monitored by Nigerian NewsDirect.
He stated that the federal government together with the NNPC were working to ensure supply of crude oil to the Dangote refinery and ensuring that the ongoing petrol scarcity in the country is resolved soonest.
According to him, “NNPC has been collaborating with private refineries, including Dangote, to guarantee a consistent supply of crude oil for refining.”
He said, “We’ve provided over 30 million barrels of crude oil to Dangote refinery so far and this month alone we will be providing 6.3 million barrels of crude oil to Dangote refinery in seven cargoes and in October we will be providing another 11.3 million barrels of crude oil to Dangote refinery in 13 cargoes. So we are doing everything we can to make sure this situation abates as soon as possible.”
He further explained that multiple issues are contributing to the fuel scarcity situation, noting that while the fuel queues may come and go, a permanent solution requires ideal market conditions and sufficient foreign exchange liquidity.
Additionally, he also mentioned that even with the Dangote refinery in Nigeria and the government’s facilitation of crude purchases in Naira, NNPC is playing a supportive role in addressing the issue.
Recall that Dangote refinery has since the beginning of the year been having a running battle with international oil companies in Nigeria making the refinery resort to import crude oil despite Nigeria being the biggest producer of oil in Africa.
However, last month the Federal Executive Council (FEC) chaired by President Tinubu approved the sale of crude oil to the Dangote refinery and other refineries in the country in Naira to mitigate against the effect of FX liquidity on supply.
Earlier in the year, the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) had mandated crude oil producers in the country that in line with the provisions of the Petroleum Industry Act (PIA), they are meant to allocate specific quantities of crude oil to meet local refineries in the country.
The Federal Executive Council’s decision to sell crude oil to Dangote Refinery and other local refineries in Naira carries several significant implications for Nigerians: The initiative is expected to stabilise pump prices, potentially resulting in lower and more consistent fuel costs for consumers.
Additionally, conducting transactions in Naira rather than dollars could ease pressure on foreign exchange reserves, contributing to the stabilisation of the Naira-dollar exchange rate and helping to control inflation.
