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Dangote Refinery: NNPCL, Marketers To End Petrol Imports

Published

1 month ago

Nov 24, 2024.

The Nigerian National Petroleum Company Limited (NNPCL) and major oil marketers are engaged in discussions aimed at eliminating petrol importation by increasing reliance on the Dangote Refinery.

The meeting, held at the NNPCL Towers in Abuja and chaired by NNPCL Group CEO Mele Kyari alongside the Nigerian Midstream and Downstream Petroleum Regulatory Authority, included representatives from the Major Oil Marketers Association of Nigeria, Depot and Petroleum Products Marketers Association of Nigeria, and stakeholders from companies like 11 Plc, Matrix, and AA Rano.

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EKO HOT BLOG reports that Sources revealed that the talks stem from growing confidence in the Dangote Refinery’s capacity to meet domestic fuel demand and the push to reduce fuel imports. However, the discussions remain ongoing, with key stakeholders yet to finalize agreements.

A source stated, “Some stakeholders weren’t present at the meeting and need to be carried along. Until everyone agrees to the terms, no deal will be finalized.”

NNPCL reportedly emphasized that petrol importation would require specific clearance tied to the Dangote Refinery’s capacity.

This proposal has caused unease among marketers, who raised concerns about the refinery’s ability to meet Nigeria’s fluctuating demand and maintain consistent supply across the country.

NNPCL End Petrol Imports

Another contentious issue is Dangote Refinery’s payment structure, which requires advance payment from marketers, a departure from the traditional post-delivery payment system. This shift has sparked concerns, especially among smaller marketers with limited capital.

“Paying upfront increases financial pressure on marketers, particularly those with tight liquidity,” a stakeholder noted. “The post-delivery payment model aligns better with our operational cycles.”

While stakeholders acknowledge the strategic intent of leveraging local refining capacity, they stress the need for agreements that address operational challenges and ensure a smooth transition from importation to local production.