By Ayomide Otitoju
The Nigerian National Petroleum Company Limited (NNPCL) has announced the delivery of 30 million barrels of crude oil to the Dangote oil refinery, with plans to supply an additional 17 million barrels in the coming months. This was disclosed by the Executive Vice President of NNPCL Downstream, Adedapo Segun, during an interview on Arise Television on Thursday.
Segun revealed that NNPCL will deliver 6.3 million barrels in September and an additional 11.3 million barrels in October. “We have supplied about 30 million barrels to Dangote so far—6.3 million this month, and we will supply 11.3 million in October,” he stated.
This move is part of the Federal Government’s strategy to sell crude oil to local refineries to enhance domestic refining capacity. Segun noted that the 6.3 million barrels for September will be delivered in seven cargoes.
Addressing concerns over the current fuel pump price, Segun noted that it does not accurately reflect market conditions. “The pump price today is not reflective of the market. NNPCL remains the sole importer of Premium Motor Spirit (PMS) in the country, which is an unusual situation. Ideally, fuel prices should be determined by free market forces,” he said.
Segun clarified that NNPC’s role as the sole importer of petrol was not intentional, but rather a response to reduced participation from other market players. “We didn’t choose to be the sole importer. We stepped in when others reduced their participation. It’s not about NNPC wanting to be a monopolist,” he explained.
He also stressed the need for a more liquid foreign exchange market to stabilize fuel supply and pricing, adding, “Market conditions need to be ideal, and there needs to be FX liquidity.”
NNPCL continues to collaborate with private refineries like Dangote to ensure a steady supply of crude oil for refining, as part of broader efforts to improve Nigeria’s fuel supply chain.
