The Nigerian National Petroleum Company Limited has announced it will stop importing petroleum, switching entirely to buying locally refined fuel from the Dangote Refinery.
This shift is expected to save Nigeria around $10 billion annually, as all petroleum products will now come from within the country.
The Group Chief Executive Officer of NNPC, Mele Kyari, made this announcement during the Nigerian Association of Petroleum Explorationists’ 42nd annual conference in Lagos.
He said, “From now on, NNPC will only source products locally, and we are committed to making sure the supply is stable and sustainable for the Nigerian market.”
Kyari explained that NNPC’s partnership with the Dangote Refinery, which has a capacity of 650,000 barrels per day, means they can now process crude oil domestically rather than sending it abroad for refining. He highlighted that the Petroleum Industry Act (PIA) mandates Nigerian oil producers to supply crude oil locally. “This isn’t just an NNPC obligation. All oil producers in Nigeria must now contribute to local refining efforts,” he said.
The Independent Petroleum Marketers Association of Nigeria has also reached a deal with the Dangote Refinery to purchase petroleum directly, a move expected to provide steady supply at affordable prices.
IPMAN president, Abubakar Shettima, shared, “This agreement ensures we have a direct supply channel from Dangote, helping us keep prices stable and accessible for Nigerians.”
In his address, Kyari further debunked claims that the NNPC was avoiding selling crude oil to Nigerian refineries in naira. “Selling in naira does not harm NNPC. If we sell in naira and buy in naira, there is no currency loss involved,” he clarified.
NNPC has also emphasized plans to support the federal government’s push for Compressed Natural Gas as an alternative fuel. Kyari revealed that NNPC would launch at least 12 CNG stations across Nigeria by early 2025 to encourage widespread adoption of CNG.
IPMAN expressed support for this CNG initiative, calling for collaboration with the government. “We see CNG as a way to improve the economy and create more jobs, and we are fully ready to support the rollout across our outlets,” said Shettima.
