NNPCL Ends Petrol Imports, IPMAN Signs Direct Deal with Dangote Refinery

The Nigerian National Petroleum Company Limited (NNPCL) has officially ended decades of massive importation of petroleum products, marking a significant milestone in Nigeria’s energy sector.

NNPCL will now source its petroleum products from the newly operational Dangote Petroleum Refinery in Lagos, which has a production capacity of 650,000 barrels per day. This development is expected to save the country up to $10 billion annually in foreign currency, reduce reliance on imports, and boost local refining capacity, in line with the country’s economic goals.

The announcement was made by NNPCL’s Group Chief Executive Officer, Mr. Mele Kyari, during his keynote address at the 42nd Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos.

The new supply arrangement follows an agreement between President of the Dangote Group, Aliko Dangote, his management team, and the leadership of the Independent Petroleum Marketers Association of Nigeria (IPMAN), yesterday, allowing marketers to purchase products directly from the Dangote Refinery.

Previously, IPMAN members had been buying petroleum products from NNPCL, a practice they had strongly opposed. The new arrangement is seen as a positive shift, particularly in the context of Nigeria’s domestic energy needs.

Kyari also addressed concerns surrounding crude oil supply to local refineries, emphasizing that under the Petroleum Industry Act (PIA) 2021, all oil producers in Nigeria are obligated to supply crude to the NNPC’s refineries once they are back in operation. He further clarified that NNPC’s involvement with the Dangote Refinery is part of a strategic business decision to ensure a stable market for domestic crude production, preventing the company from being affected by a shrinking global oil market.

“As part owners of the Dangote Refinery, NNPC sees this as an opportunity to secure a market for at least 300,000 barrels per day of our crude oil production,” Kyari stated. “It is a well-informed decision to support domestic refineries for the benefit of Nigeria’s energy sector.”

In related developments, IPMAN National President, Abubakar Shettima, affirmed that the Dangote Refinery has agreed to supply members of IPMAN directly with petrol, diesel, and kerosene. This move is expected to ensure a steady supply of petroleum products across Nigeria at more affordable rates.

Shettima urged all IPMAN members to fully support the Dangote Refinery, stressing the long-term benefits of backward integration for Nigeria’s foreign exchange reserves and job creation. He also encouraged the transition to CNG (Compressed Natural Gas) refill stations in line with the federal government’s energy plans.