The Nigerian National Petroleum Company Limited (NNPC) has issued a directive to oil marketers to cease the importation of petrol, asserting that the Dangote Refinery possesses sufficient capacity to meet domestic demand. This decision emerged during a high-level meeting in Abuja, attended by key stakeholders from the oil and gas industry.
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According to sources privy to the discussions, the NNPC emphasised that all petrol supply would now hinge on clearance from the Dangote Refinery. An official stated, “NNPC emphasised that going forward, no marketer would be permitted to import petrol without specific clearance tied to Dangote’s capacity.”
However, the decision has raised concerns among oil marketers about the refinery’s ability to reliably supply the market and maintain consistent distribution across Nigeria. Stakeholders also questioned the proposed payment structure, which requires advance payment from marketers, deviating from the traditional post-delivery payment model.
Dangote Refinery has been selling its products on the global market since starting operations in January, but recently began supplying local marketers in addition to its exclusive agreement with NNPC. The refinery boasts gasoline that meets quality standards with a sulfur content below 10 ppm, a significant improvement for the Nigerian market.
Despite NNPC’s recent statement about halting fuel imports, the company clarified that its CEO’s remarks were taken out of context. NNPC stated that while it prioritises sourcing products from domestic refineries, this is contingent upon economic viability, and the same principle applies to other marketers.
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