NNPCL Halts Fuel Importation, Partners with Dangote Refinery to Meet Domestic Demand
Abuja, Nigeria – November 12, 2024
In a major shift for Nigeria’s energy sector, the Nigerian National Petroleum Company Limited (NNPCL) has announced that it has ceased all fuel importation, transitioning to sourcing from local refineries, including the newly operational Dangote Refinery. This development marks a significant milestone in Nigeria’s drive for energy self-sufficiency, reducing dependence on imported refined petroleum products.
At a press briefing on Tuesday, NNPCL’s Group Managing Director (GMD), Mr. Mele Kyari, expressed the company’s commitment to supporting domestic refineries and emphasized the strategic importance of the new partnership with the Dangote Refinery. “Today, NNPC does not import any product; we are taking only from domestic refineries,” Kyari stated, noting the value of strengthening local refining capacity.
The Group Chief Executive Officer, Mele Kyari elaborated on NNPCL’s investment in the Dangote Refinery, affirming the mutual benefits of this collaboration. “We are very proud part-owners of Dangote refinery, no doubt about it. We saw an opportunity that there is a clear market for at least 300,000 barrels of our production,” Kyari explained. “We know that as time moves on, people will start struggling to find markets for their production. It will happen; it’s already happening.”
The GMD highlighted that this shift from international suppliers to local sources was a deliberate business decision, made with an eye on long-term supply security and economic stability. “Oil is found, as you know, in many unexpected locations across the world, and people have choices. Therefore, we saw an opportunity to log supply to the domestic refinery—not just Dangote but any other refinery that operates in the country,” he added.
The Dangote Refinery, with a production capacity of 650,000 barrels per day, is expected to play a pivotal role in stabilizing Nigeria’s fuel market and reducing the reliance on imported fuel, which has historically put pressure on the country’s foreign reserves. The refinery’s output aligns with NNPCL’s strategy to prioritize local consumption and secure a steady, more sustainable fuel supply chain.
A New Era of Energy Security
The NNPCL’s decision marks a turning point for the Nigerian energy sector. By reducing fuel imports, the company aims to enhance fuel availability nationwide, stabilize prices, and cut down on the high costs and logistical challenges associated with fuel importation. The move aligns with Nigeria’s broader economic policies aimed at boosting local industries and reducing outflows of foreign exchange.
The Road Ahead
This development, seen as a forward-thinking strategy for Nigeria’s petroleum sector, sets the stage for further investment in domestic refining capabilities. With the Dangote Refinery and other local refineries now playing a central role, the Nigerian fuel market is poised for a new phase characterized by greater energy independence and economic resilience.