The Nigerian National Petroleum Company Limited and the Dangote Refinery are concluding discussions on crude oil sales by the national oil company to the Dangote Refinery in the local currency and the buy-back of refined products from the plant in naira.
According to Devakuma Edwin, the vice president of oil and gas at the Dangote Refinery, the parties may conclude discussions on the deal soon.
Edwin also revealed that oil marketers had continued to boycott diesel and aviation fuel from the refinery, stating that they also reported the facilityâs low-priced fuel to President Bola Tinubu.
The marketers reportedly told the president that the companyâs cheap fuel was counterproductive to oil marketersâ businesses.
The Dangote official disclosed that NNPC demanded to oversee petrol production at the Dangote refinery based on the agreement that it would supply crude to the plant.
TimesNow.com.ng previously reported that the Nigerian government disclosed that crude oil sales to the $20 billion refinery and other local refineries would begin October 1, 2024.
According to reports, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, disclosed this during a meeting with the implementation committee.
During the Space event on X hosted by Nairametrics, Edwin disclosed that discussions were advanced on the naira transactions for crude oil purchase and product buy-back.
The Dangote top executive said NNPC will monitor the production and then buy back in naira, stating the parties are waiting for the conclusion of the discussions.
He stressed that the Chairman of the Dangote Group, Aliko Dangote, insisted on dealing with the Nigerian government in naira due to foreign exchange challenges.
He said that over 95% of oil marketers and petroleum product importers in Nigeria do not buy products from the Dangote refinery.
He stated that the refinery manages to sell about 29 tankers of diesel daily due to low patronage from local importers.
Edwin said the facility exports most of its diesel and aviation fuel due to poor local patronage.
He disclosed that the refinery has so far imported about 57 shiploads of crude oil due to limited supply from NNPC.
Edwin stressed that about 44% of the refineryâs petrol production capacity can meet Nigeriaâs needs.
He said:
He said about 29 tankers lift fuel from other depots daily, neglecting local production.
TimesNow.com.ng earlier reported that the Nigerian National Petroleum Company Limited (NNPC) has disclosed that its purchasing portal will reopen immediately after the backlog of petrol orders is cleared.
Oil marketers said that shutting down the portal encourages round-tripping of products while driving up prices.
