Nigeria stops import of petrol and other refined petroleum products, shifts to reliance on Dangote Refinery and other domestic sources.
The Nigerian National Petroleum Company (NNPC) Limited says it no longer import refined petroleum products. This is a significant shift for the Nigerian petroleum industry. It marks a major milestone in the country’s ongoing efforts to boost its domestic refining capacity.
Mele Kyari, the Group Chief Executive Officer (GCEO) of NNPC, made the announcement at the 42nd annual international conference and exhibition of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos. According to Kyari, NNPC now sources all of its fuel supply exclusively from domestic refineries, including the Dangote Petroleum Refinery.
“Today, NNPC does not import any product; we are taking only from domestic refineries,” Kyari stated confidently. He explained that this transition aligns with Nigeria’s broader strategy to reduce dependence on imported refined petroleum products.
Reliance on the Dangote Refinery, as Nigeria stops import
One of the main beneficiaries of this policy shift is the Dangote Petroleum Refinery, one of the largest in Africa. Kyari clarified that NNPC is not just a customer of the Dangote refinery but also a part-owner. “We are very proud part-owners of Dangote refinery,” Kyari noted.
The decision to rely on domestic refineries for fuel supply is part of a broader strategy to secure Nigeria’s energy future. By sourcing crude oil to domestic refineries, including Dangote, NNPC hopes to create a stable and self-sufficient supply chain.
Impact on petroleum pricing in Nigeria
As NNPC ceases importing refined products, the implications for petroleum pricing in Nigeria are significant. Domestic production could lead to more stable fuel prices, reducing Nigeria’s exposure to the volatility of global oil markets. The cost of importing refined products has long been a burden on the Nigerian economy, contributing to rising fuel prices.
Kyari emphasized that the shift will not only strengthen local refineries but also help Nigeria to retain more of the value generated from its oil resources. “We knew from day one that supplying crude oil to the domestic refinery would benefit us,” Kyari said, reinforcing the business rationale behind the move.
Future outlook for Nigeria’s refining capacity
Looking ahead, Kyari believes that this shift to domestic refining will play a critical role in ensuring Nigeria’s energy security. He pointed out that as global oil markets evolve , there will be increasing competition for crude oil markets. By securing a domestic refining base, Nigeria can position itself to meet local demand without relying on imports.
Kyari also dismissed rumors suggesting that NNPC had been stalling the growth of local refineries. “We are already doing this,” he said, referring to the ongoing support for domestic refining. He reiterated that NNPC’s partnership with Dangote Refinery was a strategic business decision that would benefit the country in the long run.
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