The Nigerian National Petroleum Company Limited (NNPC) has ceased importing refined petroleum products, opting instead to procure fuel directly from the Dangote Petroleum Refinery and other local refineries. This shift, announced by NNPC’s Group Chief Executive Officer, Mele Kyari, on Monday at the Nigerian Association of Petroleum Explorationists (NAPE) conference in Lagos, aims to strengthen energy security by promoting domestic sourcing.
Kyari’s statement follows discussions around Nigeria’s high fuel import expenses, which President Bola Tinubu previously highlighted as costing an estimated N2 trillion monthly. Tinubu emphasized that expanding the use of compressed natural gas (CNG) could help redirect these funds towards essential services like healthcare and education.
At the NAPE conference, Kyari clarified that NNPC is fully committed to supporting local refineries, including the Dangote facility, and denied any allegations of undermining local fuel processing efforts. He noted that Nigerian crude, referred to as “Lamborghini crude” for its high quality, is often blended with other fuels internationally to balance costs, underscoring the premium quality of domestic products.
“We’re sourcing exclusively from local refineries and engaging with the government to manage pricing adjustments necessary for a domestic supply chain. This transition minimizes our foreign exchange burden and stabilizes market speculation around the naira,” Kyari explained.
Further, Kyari refuted claims that NNPC’s refusal to sell crude in naira was aimed at sabotaging the Dangote refinery. “Selling in naira or foreign currency has a neutral impact on us as long as it supports the domestic market. By reducing our reliance on foreign imports, we ease FX pressure, reduce inflation, and improve the currency exchange balance,” he added.
Addressing broader energy challenges, Kyari pointed out that Nigeria’s energy security still faces hurdles, with over 50% of the population lacking electricity access and 70% without clean fuel options. He stressed that the oil and gas sector must reorient toward fulfilling domestic energy needs and that NNPC is committed to bridging these gaps by increasing local fuel availability and ensuring equitable energy access.
NNPC’s local sourcing efforts and support for the Dangote refinery reflect a pivotal shift in Nigeria’s energy strategy, prioritizing affordability, security, and economic stability.
