Nigeria: NNPC to become sole buyer as Dangote Refinery begins production

PHOTO

Devakumar Edwin, the Vice President of Dangote Industries Limited, has announced that the Nigerian National Petroleum Commission (NNPC) will become the sole buyer of products from Dangote Refinery as it begins production.

According to Edwin, the NNPC is prepared to purchase all refinery outputs to meet the nation’s local demand for petroleum products. “We are currently testing the gasoline, and soon, it will start flowing into the tanks,” Edwin stated. He also noted, “If no one buys it locally, we will export it, just as we’ve been doing with our aviation jet fuel and diesel.”

This development comes amid ongoing financial challenges for the NNPC. Tribune Online previously reported that the NNPC Limited admitted to owing a substantial debt to international oil traders, which has resulted in a fuel supply shortage for local distributors.

Recent reports reveal that the NNPC owes these traders approximately $6 billion in unpaid subsidies, prompting them to halt petrol supplies to the national oil company.

Although the NNPC initially denied these claims, it later acknowledged that its outstanding debts to suppliers have been a major contributor to the ongoing fuel scarcity across the country.

With the NNPC now positioned as the sole buyer of products from Dangote Refinery, this arrangement offers some relief to the national oil company as it continues to navigate its international financial obligations.