NNPC finalizes an exclusive deal to become the sole buyer of products from the Dangote Refinery, marking a significant milestone in Nigeria’s oil sector.
The Dangote Industries Limited’s Vice President, Devakumar Edwin, has disclosed that the Nigerian National Petroleum Corporation (NNPC) will have exclusive rights to purchase petroleum products from the forthcoming Dangote Refinery as it commences operations.
The partnership is strategically designed to enable NNPC to assume a vital role in the distribution of refinery output, ultimately stabilizing Nigeria’s fuel supply and satisfying domestic needs.
Edwin emphasized that the NNPC is ready to procure all products from the refinery in order to meet local demands for petroleum goods. “We are presently conducting tests on the gasoline and it will soon be pumped into storage tanks,” Edwin remarked.
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“If we don’t make any local sales, we’ll ship it out just like our aviation jet fuel and diesel,” he stated.
At a time when the NNPC is facing serious financial difficulties, this agreement has been made. Tribune Online’s latest updates reveal that NNPC Limited admits owing a significant debt to international oil traders amounting up to $6 billion in unpaid subsidies.
The fuel scarcity being experienced in the country has been made worse by the suspension of petrol supplies to NNPC, which was caused by this debt.
At first, the NNPC refuted these accusations; however, it eventually confessed that its unpaid dues to suppliers played a substantial role in fuel distribution concerns at present.
When the NNPC becomes the only purchaser of products from Dangote Refinery, it has potential to lessen some pressure on the national oil company. This partnership may assist in meeting international financial duties while also guaranteeing a consistent fuel supply for Nigeria.
The launch of operations at the Dangote Refinery represents a crucial turning point in Nigeria’s efforts to attain self-sufficiency in energy, and the specially designated contract with NNPC is viewed as an essential measure towards reaching that objective.
