The Nigerian National Petroleum Company Limited (NNPCL) has announced the successful supply of 30 million barrels of crude oil to the Dangote oil refinery, with plans to deliver an additional 17 million barrels in the coming months.
Adedapo Segun, Executive Vice President of NNPCL Downstream, revealed this during an interview on Arise Television on Thursday. He detailed the upcoming deliveries, stating, “We have supplied about 30 million barrels to Dangote so far—6.3 million this month, and we will supply 11.3 million in October.” The September shipment of 6.3 million barrels will be delivered through seven cargoes.
Segun explained that this supply is part of the Federal Government’s strategy to sell crude oil to local refineries, ensuring steady production and domestic fuel availability.
Addressing Nigeria’s current fuel pricing challenges, Segun expressed concern that the current pump prices do not accurately reflect market realities. He emphasized the need for market-driven pricing, noting, “The pump price today is not reflective of the market. NNPCL is the sole importer of Premium Motor Spirit (PMS) in the country, which is abnormal. We should be moving towards a situation where the free market determines prices.”
He clarified that NNPCL’s role as the sole importer of petrol was not a deliberate choice but a necessary step to stabilize the market when other participants reduced their involvement. “NNPCL didn’t choose to be the sole importer. We stepped in when others reduced their participation. It is not about us wanting to be monopolists,” Segun explained.
Segun further noted that achieving price stability and steady fuel supply would require a more liquid foreign exchange (FX) market and ideal economic conditions. He indicated that broader economic reforms could be necessary to create the right environment for competitive fuel pricing.
NNPCL continues to collaborate with private refineries, including Dangote, to ensure a steady flow of crude oil for local refining, aiming to enhance Nigeria’s fuel supply system and move towards a more market-oriented pricing structure.