Bayo Ojulari
The Nigerian National Petroleum Company Limited (NNPCL) has agreed to supply crude oil to the Dangote Refinery on a commercially willing buyer and willing seller basis. This means that both parties will negotiate and agree on the terms of the crude oil supply, taking into account market conditions and availability.
Bayo Ojulari, Group Chief Executive Officer of NNPCL, emphasized that the company wants to move away from government dominance in private sector businesses and allow the private sector to have more freedom. However, NNPCL is committed to improving domestic crude supply to the Dangote Refinery, with plans to increase the proportion of local crude in the refinery’s feedstock.
The agreement involves payment in Naira for crude oil sales, aiming to reduce reliance on imported petroleum products and stabilize the domestic fuel supply. Dangote Refinery plans to lift 10 cargoes of crude oil from NNPC between July and August 2025, with a goal of transitioning to 100% local crude supply by December 2025.
As of June, over 53% of the refinery’s crude supply came from Nigerian producers, while 47% was imported. The refinery is working to transition to 100% local crude, which would significantly reduce Nigeria’s dependence on imported fuels and improve the country’s foreign exchange stability.
The Dangote Refinery’s transition to local crude supply is expected to have a positive impact on the Nigerian economy. By reducing the country’s reliance on imported petroleum products, the refinery will help to conserve foreign exchange, create jobs, and stimulate economic growth.
Moreover, the refinery’s success will also depend on the availability of crude oil supplies from Nigerian producers. NNPCL’s commitment to improving domestic crude supply to the refinery is crucial in ensuring the refinery’s long-term sustainability.
The development has sparked optimism among industry stakeholders, who believe that the Dangote Refinery will play a critical role in Nigeria’s economic development. With its massive production capacity, the refinery is expected to meet a significant portion of Nigeria’s fuel needs, reduce the country’s reliance on imported petroleum products, and create thousands of jobs.
Overall, the agreement between NNPCL and Dangote Refinery marks a significant milestone in Nigeria’s quest for energy self-sufficiency. As the refinery transitions to 100% local crude supply, it is expected to have a positive impact on the Nigerian economy, create jobs, and stimulate economic growth.
