The Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPC) have made progress in their negotiations on in-country fuel supply, with Dangote agreeing to sell refined petrol in Naira and NNPC requesting to deploy a monitoring team to the refinery.
According to Devakumar Edwin, Vice President, Oil and Gas, Dangote Industries Limited, “NNPC has informed us that they intend to station a team of six to 10 people permanently at our refinery. They’ve asked us to provide office space for them since they will be supplying the crude, overseeing the production, and buying back the products in Naira.”
Edwin added that the request aligns with NNPC’s aim to closely monitor the entire process, ensuring consistent crude supply and efficient processing while securing a steady flow of PMS for the country.
Aliko Dangote, President of Dangote Group, has agreed to sell products from the refinery in Naira, despite potential financial losses. Edwin quoted Dangote as saying, “We are going to accept this because the country desperately needs foreign exchange, and the value of the Naira is deteriorating every day. I understand that I am going to take a loss.”
The negotiations are ongoing, with critical aspects like crude pricing and the Naira exchange rate yet to be finalized. Edwin expressed frustration over local marketers’ boycott of Dangote Refinery’s products, stating, “We are selling 2 to 3 per cent to small traders who are willing to buy, while the rest 95 to 97 per cent we are forced to export.”
The Dangote Refinery has invested $20 billion in the facility and aims to produce 54 million liters of refined petroleum products per day, depending on crude oil supply.