NNPC set to become sole buyer of Dangote Refinery products

Devakumar Edwin, Vice President of Dangote Industries Limited, has announced that the Nigerian National Petroleum Corporation (NNPC) will be the exclusive buyer of petroleum products from the Dangote Refinery as it begins production.

This strategic partnership positions the NNPC to play a crucial role in distributing the refinery’s output, which is expected to significantly stabilize Nigeria’s fuel supply and meet the country’s local demand.

Edwin highlighted that the NNPC is prepared to purchase all products from the refinery to address the domestic need for petroleum products. “We are currently testing the gasoline, and soon, it will start flowing into the tanks,” Edwin noted.

He added, “If no one buys it locally, we will export it, just as we’ve been doing with our aviation jet fuel and diesel.”

This arrangement comes at a time when the NNPC is grappling with severe financial challenges. Recent reports by Tribune Online indicate that the NNPC Limited has acknowledged owing a substantial debt to international oil traders, estimated to be around $6 billion in unpaid subsidies.

This debt has led to a suspension of petrol supplies to the NNPC, exacerbating the fuel scarcity currently affecting the country.

Initially, the NNPC denied these allegations, but it later admitted that its outstanding debts to suppliers have significantly contributed to the ongoing fuel supply issues.

As the NNPC steps into the role of the sole buyer of Dangote Refinery’s products, this partnership could provide some relief to the national oil company as it seeks to fulfill its international financial obligations while ensuring a steady fuel supply for the nation.

The commencement of production at the Dangote Refinery marks a pivotal moment in Nigeria’s quest for energy independence, and the exclusive arrangement with the NNPC is seen as a critical step towards achieving that goal.