- NNPCL is in talks with oil marketers to reduce reliance on petrol imports, focusing on the Dangote Refinery’s capacity to meet domestic fuel needs
- Stakeholders expressed confidence in Dangote Refinery’s ability to supply fuel, but concerns remain over its ability to meet national demand consistently
- Talks included the introduction of advance payment models and restrictions on petrol imports
The Nigerian National Petroleum Company Limited (NNPCL) is in talks with major oil marketers and other stakeholders to devise a strategy aimed at eliminating the importation of petrol, with a strong focus on increasing the country’s reliance on the Dangote Refinery for domestic fuel supply.
A meeting was recently held by Mele Kyari, NNPCL’s Group Chief Executive Officer, alongside the Nigerian Midstream and Downstream Petroleum Regulatory Authority, and included representatives from major oil marketing associations such as the Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMA), and other key companies like 11 Plc, Matrix, and AA Rano.
The meeting, held on Saturday, November 23, at the NNPCL towers in Abuja, revolved around strategies to ensure that Dangote Refinery can meet Nigeria's fuel needs and reduce the reliance on fuel imports.
A key discussion point was the growing confidence in Dangote Refinery’s ability to meet the nation’s domestic fuel demand, with stakeholders expressing a desire to reduce importation of petrol.
However, a source familiar with the discussions confirmed that the talks are still ongoing, with no final agreement reached yet.
Some stakeholders were yet to be fully integrated into the discussions, and consensus on several points is still required before any official announcement can be made.
One major point raised during the meeting was that, moving forward, no marketer would be allowed to import petrol without specific clearance linked to the Dangote Refinery's production capacity. While this move is considered strategic, it has raised concerns among oil marketers, particularly regarding the refinery's ability to supply the entire nation reliably and maintain distribution consistency across Nigeria’s vast network.
Additionally, the payment structure proposed by Dangote Refinery has become a contentious issue. Unlike the traditional importation system where marketers settle payments upon arrival of products at depots, Dangote is insisting on advance payments from marketers.
This proposal has sparked concerns, especially among smaller players in the downstream sector, who argue that the upfront payment model would create significant financial pressure.
A stakeholder voiced concerns about the feasibility of this shift, noting that the traditional post-delivery payment system aligns better with marketers' cash flow cycles, as many have limited capital reserves to meet upfront payment requirements.
Improved petrol supply: NNPCL seeks private companies to operate Warri, Kaduna refineries
Meanwhile, TheRadar reported that the Nigerian National Petroleum Company Limited (NNPCL) said it would engage private companies that would oversee the operation and maintenance of its Warri and Kaduna refineries.
In a circular released on Thursday, August 29, through its official X account, NNPCL said the decision was to ensure reliability, sustainability and improved supply of petrol and enhance energy security.
