According to Devakumar Edwin, a vice president at Dangote Industries Limited, the Nigerian National Petroleum Company (NNPC) Ltd, the country’s sole importer of petrol, would exclusively purchase the refinery’s petrol.
The news comes a day after the NNPC said it is grappling with severe financial challenges as it battles mounting debt to petrol suppliers, raising concerns over the sustainability of the Nigeria’s fuel supply.
The $20 billion Dangote Refinery, located on the outskirts of Lagos, built by Nigerian billionaire Aliko Dangote, began operations in January, initially producing products like diesel and jet fuel.
With a capacity of 650,000 barrels per day, Africa’s largest refinery is expected to significantly reduce Nigeria’s reliance on imported oil products.
“We are testing the product (Petrol) and subsequently it will start flowing into the product tanks,” said Devakumar Edwin, a vice president at Dangote Industries Limited. However, Edwin did not specify when the petrol would be available on the local market.
Edwin then mentioned that the Nigerian National Petroleum Company (NNPC) Ltd, the country’s sole importer of petrol, would exclusively purchase the refinery’s petrol. He added, “If no one is buying it, we will export it as we have been exporting our aviation jet fuel and diesel.”
The introduction of petrol from the Dangote refinery is expected to alleviate some of the supply challenges NNPC has been facing. Since January, NNPC has accumulated $6 billion in debt to oil traders, which has impacted its ability to meet domestic fuel demands. This has led to persistent fuel queues in the country since July, leading to a surge in fuel prices.
Despite being Africa’s top oil producer, Nigeria imports almost all its fuel due to the prolonged neglect of its national refineries. The Dangote refinery’s petrol production is seen as a significant step towards addressing this long-standing issue.
However, the Nigerian National Petroleum Company Limited (NNPC) has said it is grappling with severe financial challenges as it battles mounting debt to petrol suppliers, raising concerns over the sustainability of the nation’s fuel supply.
This comes not long after the company revealed a record-breaking net profit of ₦3.297 trillion for the financial year ending December 2023, marking a significant increase of ₦749 billion, or 28%, from the ₦2.548 trillion profit reported for 2022.
The company had also declared a substantial final dividend of ₦2.1 trillion.
In a press statement released on Sunday by the Chief Corporate Communications Officer, Olufemi Soneye, NNPC acknowledged reports circulating in national newspapers about its significant debt obligations.
The company revealed that the financial strain has placed immense pressure on its operations, posing a potential threat to its ability to maintain consistent fuel supply across the country.
“The financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply,” the statement read.
NNPC plays a critical role in ensuring the availability of petroleum products, a responsibility underscored by the Petroleum Industry Act (PIA). The company reaffirmed its commitment to this duty, despite the current challenges, stating, “NNPC Ltd remains dedicated to its role as the supplier of last resort, ensuring national energy security.”
