The Nigerian National Petroleum Company Limited (NNPC) has issued a rebuttal against reports claiming it had discontinued importing refined petroleum products, labeling such interpretations as inaccurate and misleading.
In a statement released by Chief Corporate Communications Officer Femi Soneye, NNPC addressed the misinterpretation of comments made by Group Chief Executive Officer Mele Kyari at the Nigerian Association of Petroleum Explorationists conference in Lagos.
“The GCEO’s statement, ‘Today, NNPC does not import any product; we are only taking from domestic refineries,’ was taken out of context,” Soneye clarified. “It should not be construed to imply that NNPC Ltd. is obligated to be the sole off-taker of any refinery or that we will no longer import fuel.”
The company emphasized that while it prioritizes sourcing products from domestic refineries, this preference is strictly governed by economic considerations. Soneye explained that local supply would be favored only when cost-effective, noting that the same economic principles apply to other market players who must evaluate total costs when choosing between local purchases and imports.
The statement specifically addressed the misreporting of Kyari’s speech at the conference, which focused on “Resolving the Nigerian Energy Trilemma: Energy Security, Sustainable Growth and Affordability.”
NNPC pointed out that nowhere in Kyari’s remarks did he announce an end to fuel importation or mention any figure of N24 trillion, as claimed in some reports.
Soneye emphasized a crucial regulatory point: the authority to grant import licenses rests solely with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), as stipulated in the Petroleum Industry Act (PIA).
The statement highlighted NNPC’s market position, noting that the company controls less than 30 percent of the downstream market, adhering to PIA provisions designed to foster competition and prevent monopolistic practices.
“The law promotes a free-market system where competition drives efficiency and cost reduction, ensuring that consumers benefit. Domestic refiners must compete on price and value, as patronage cannot be legislated in a deregulated sector,” Soneye stated.