The Nigerian National Petroleum Company Limited (NNPC) has officially ceased importing refined petroleum products, relying instead on supplies from local refineries, including the Dangote Petroleum Refinery. This shift was confirmed by NNPC Group Chief Executive Officer Mele Kyari during a conference organized by the Nigerian Association of Petroleum Explorationists in Lagos. The conference focused on energy security, sustainable growth, and affordability in Nigeria’s energy sector.
This move comes at a critical time, as some fuel marketers argue they can provide imported fuel at prices lower than those from the $20 billion Dangote refinery. Kyari dismissed claims that NNPC has obstructed the Dangote refinery, emphasizing that NNPC’s partnership with local refineries is mutually beneficial. He clarified that supplying crude oil to local refineries aligns with NNPC’s strategic interests, especially given the high quality of Nigerian crude, which he compared to “Lamborghini crude” in terms of its purity and premium market value. However, he acknowledged that processing Nigerian crude for local consumption poses cost challenges due to its high quality.
With domestic refining, NNPC expects to alleviate foreign exchange pressure and stabilize Nigeria’s currency by reducing dependence on imported fuel, which has been a significant drain on Nigeria’s resources. President Bola Tinubu has highlighted that transitioning to local compressed natural gas (CNG) would save the country about N2 trillion monthly, equivalent to around N24 trillion annually, previously spent on fuel imports.
Kyari also addressed Nigeria’s broader energy security issues, noting that more than half the population lacks access to electricity, and 70% lacks access to clean fuel. He underscored NNPC’s commitment to improving domestic energy access by delivering products into the local market.
In a significant financial milestone, NNPC recently settled a $2.4 billion debt owed to International Oil Companies (IOCs) in joint ventures, which was previously a heavy burden due to the financial diversion caused by fuel subsidies. With these subsidies now removed, NNPC aims to re-focus on its core upstream oil and gas activities. The GCEO also assured that Nigeria would establish 12 mother stations for CNG by early 2025, along with a new mini Liquefied Natural Gas plant, which will provide cleaner and cheaper fuel alternatives while supporting smaller power plants across Nigeria.
This initiative marks a shift toward greater energy independence for Nigeria, positioning NNPC as a central player in the country’s energy transition, focused on domestic energy provision, reducing import reliance, and ensuring sustainable growth in the energy sector.
