By Ayomide Otitoju
The Nigerian National Petroleum Company Limited (NNPC) clarified on Thursday that it has not halted the importation of petroleum products, despite recent remarks that sparked public speculation. NNPC spokesperson Olufemi Soneye stated that while NNPC continues to prioritize local sourcing when economically viable, it retains the option to import fuel when needed.
The statement followed remarks made by Group Chief Executive Officer Mele Kyari at the Nigerian Association of Petroleum Explorationists conference. Kyari’s comment, “Today, NNPC does not import any product; we are only taking from domestic refineries,” was accurately quoted but reportedly misinterpreted, according to Soneye.
“The GCEO’s statement should not imply that NNPC Ltd is mandated to source exclusively from local refineries or cease importation,” Soneye explained. “NNPC will assess the cost-effectiveness of sourcing locally, and other marketers are expected to do the same, especially within Nigeria’s deregulated sector.”
Soneye also noted that the decision to grant import licenses is under the jurisdiction of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, in line with the Petroleum Industry Act (PIA). Under PIA guidelines, NNPC controls no more than 30% of the market, which aims to encourage competition and prevent monopolistic practices.
At the conference, Kyari addressed claims that NNPC might be unwilling to sell crude to refineries in naira, dismissing the concerns as baseless. He highlighted that using naira for domestic crude transactions would offset foreign exchange (FX) demands for imports, helping stabilize the naira, reduce inflation, and alleviate FX pressure.
Kyari emphasized that this initiative, backed by the President, is a strategic move to alleviate FX burdens stemming from Premium Motor Spirit (PMS) imports, one of the country’s largest FX expenses. “If you can take that under control, speculation around the naira will reduce, inflation will be curbed, and FX stability for domestic supply will be bolstered,” Kyari said.
Soneye commended the accurate coverage of NNPC’s investment in Compressed Natural Gas infrastructure, highlighting its commitment to affordable, secure energy options for Nigerians.
