The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, has firmly dismissed allegations that the NNPC is undermining local refineries in favour of imported fuel.
Speaking at the opening of the 42nd Nigeria Association of Petroleum Explorationists (NAPE) Annual Conference in Lagos, themed “Resolving the Nigeria Energy Trilemma: Energy Security, Sustainable Growth, and Affordability,” Kyari outlined NNPCL’s commitment to supporting domestic refining and promoting Nigeria’s energy independence.
Kyari’s remarks come amid rising tensions between oil marketers and Dangote Refinery, with speculations around NNPC’s role in the refinery’s operations.
The NNPCL, a partial stakeholder in the Dangote Refinery, was initially set to acquire a 20% stake, later reduced to 7.2%.
In a recent interview, Aliko Dangote revealed that the NNPC revised its investment terms, reducing its stake and opting out of a crude-for-debt repayment structure.
Dangote stated, “We had agreed on an arrangement where NNPC would cover part of its investment by supplying us with crude, but they later chose to pay the remaining balance in cash. Though there were misunderstandings, the deal is now finalized, and Dangote Group holds a majority stake in the refinery.”
Despite these challenges, Kyari emphasized NNPCL’s commitment to working with local refineries to ensure an affordable and steady supply of petroleum products, ultimately reducing dependency on imports.
He also pointed to broader goals, including stabilizing Nigeria’s foreign exchange market by facilitating Naira-for-crude transactions and promoting gas infrastructure projects like the Ajaokuta-Kaduna-Kano (AKK) and Obiafu-Obrikom-Oben (OB3) pipelines to increase domestic energy production.
“NNPC Ltd. has ceased importing refined petroleum products, sourcing fuel solely from domestic refineries, including Dangote Refinery,” Kyari stated.
He also welcomed the Federal Government’s recent move allowing other marketers, like the Independent Petroleum Marketers Association of Nigeria (IPMAN), to engage directly with Dangote Refinery, securing alternative lifting agreements to support fuel supply across the nation.
Kyari further outlined NNPC’s plans to establish 12 Compressed Natural Gas (CNG) mother stations and mini Liquefied Natural Gas (LNG) plants to support Nigeria’s domestic gas supply, which currently stands at 1.6 billion standard cubic feet per day.
He underscored the company’s role in achieving Nigeria’s energy goals as mandated by the Petroleum Industry Act of 2021, which includes enhancing local production and ensuring energy security.
Reflecting on the conference’s theme, Kyari acknowledged the challenges of balancing energy security, sustainable growth, and affordability, stating, “Addressing the energy trilemma requires innovative solutions, strategic partnerships, and a shared commitment to Nigeria’s energy future.”
He lauded President Tinubu’s efforts to reduce foreign exchange pressures by strengthening local refining capacity, emphasizing that Nigeria’s path to energy security relies on collaboration, technological advancements, and bold policy decisions.
Kyari concluded with a call for collective action: “Together, let us build a Nigeria where energy is secure, sustainable, and affordable for all.”
