The Nigerian National Petroleum Company Limited (NNPCL) has officially ceased the importation of refined petroleum products, as announced by its Group Chief Executive Officer, Mele Kyari.
This pivotal shift marks a new era where NNPCL is now sourcing fuel exclusively from domestic refineries, including the Dangote Petroleum Refinery.
Kyari made this announcement during his keynote address at the Nigerian Association of Petroleum Explorationists conference in Lagos, themed ‘Resolving the Nigerian Energy Trilemma: Energy Security, Sustainable Growth and Affordability’.
This development comes amidst ongoing discussions about Nigeria's energy security and economic sustainability. Previously, Nigeria spent approximately N24 trillion annually on importing petrol and diesel, a figure highlighted by President Bola Tinubu. The cessation of imports is expected to alleviate the financial burden on the country and redirect resources towards healthcare and education.
Kyari also addressed allegations that NNPCL was sabotaging the Dangote refinery by not supporting domestic refining efforts. He clarified, “Today, NNPC does not import any product, we are taking only from domestic refineries.” Furthermore, he emphasized that the company is working with the government to manage pricing issues related to sourcing all supplies domestically.
In addition to these changes, Kyari announced the settlement of NNPCL’s longstanding $2.4 billion cash-call debt owed to International Oil Companies, a milestone achieved following the removal of subsidies. This move is expected to allow NNPCL to focus more on its core upstream activities without the distraction of subsidy-related financial strains.
The transition to domestic sourcing is part of a broader strategy to enhance Nigeria's energy security. Despite being an oil-producing nation, over 50% of the population lacks access to electricity, and 70% does not have access to clean fuel.
Kyari stressed the importance of addressing these gaps, stating, “As a country today, we all know that over 50 per cent of our population doesn’t have access to electricity. Over 70 per cent of our population doesn’t have access to clean, good fuel.”
By the first quarter of 2025, NNPCL plans to establish 12 Compressed Natural Gas (CNG) mother stations and a mini Liquefied Natural Gas plant to improve gas availability for power generation. This initiative aims to provide cheaper and cleaner fuel options, leveraging domestic resources to meet the country's energy needs sustainably.
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