NNPCL has reaffirmed commitment to supplying crude oil to Dangote Refinery on commercial terms.
NaijaOnPoint Nigeria reports that the Nigerian National Petroleum Company Limited (NNPCL) has reiterated that it will continue supplying crude oil to the Dangote Refinery based on a commercial arrangement guided by the principle of willing buyer and willing seller.
This assurance was given by the Group Chief Executive Officer of NNPCL, Bayo Ojulari, during a recent interview with Bloomberg. He emphasized that while the refinery is free to import crude for its operations as a commercial entity, efforts are underway to boost domestic crude supply to the facility.
“Dangote Refinery is a commercial investment and therefore has the flexibility to import crude to stay operational. However, we are working to improve the volume of crude supplied domestically,” Ojulari stated. “Our goal is to reduce government dominance in private sector operations and promote free-market dynamics. Crude oil supply from Nigeria to the refinery will strictly adhere to commercially agreed terms.”
Ojulari’s remarks follow an earlier statement by Devakumar Edwin, President of Dangote Industries, who told Bloomberg that the refinery aims to rely 100 percent on domestic crude supply by the end of December 2025.
In July 2024, President Bola Ahmed Tinubu directed that crude oil be sold to the Dangote Refinery in Naira. The directive was implemented in October 2024 and, according to the Nigerian government’s Technical Sub-Committee on Crude and Refined Product Sales in Naira, the initiative will remain in force indefinitely.