The Nigerian National Petroleum Company Limited has announced that it has already delivered 30 million barrels of crude oil to the Dangote refinery, with plans to supply an additional 17 million barrels in the near future. This development was revealed by the Executive Vice President of NNPCL Downstream, Adedapo Segun, during an interview on Arise Television on Thursday. Segun provided a detailed breakdown of the forthcoming supplies, stating that the company would deliver 6.3 million barrels in September, followed by another 11.3 million barrels in October. "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," he affirmed, emphasizing the ongoing commitment to support the local refining capacity. These crude oil deliveries align with the Federal Government's broader strategy to prioritize selling crude to local refineries, a move aimed at bolstering Nigeria’s refining infrastructure and reducing dependency on imported refined products. Segun also highlighted that the September supply of 6.3 million barrels would be divided across seven cargo shipments. Addressing the current pricing structure for Premium Motor Spirit commonly referred to as petrol, Segun expressed concern that the pump price in Nigeria does not accurately reflect the realities of the global market. "The pump price today is not reflective of the market," he remarked, pointing out that NNPCL’s role as the sole importer of PMS is not sustainable or ideal for a competitive market. Segun further elaborated that the company did not deliberately position itself as the dominant player in petrol importation but had stepped in to fill the gap left by other market participants. "NNPC 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 noted, advocating for a transition towards market-driven pricing mechanisms. Clarifying the company's role, he added, "Let me put it into proper perspective. NNPC is not a regulator. We didn’t choose to be the sole importer. We don’t determine who participates in the market. We stepped in when others reduced their participation. It is not about us wanting to be monopolists." Segun also stressed that achieving stability in fuel supply and pricing requires more than just NNPC’s involvement, pointing to the need for a more liquid and stable foreign exchange market to support broader economic reforms. "Market conditions need to be ideal, and there needs to be FX liquidity," he explained, signaling that lasting solutions to the country’s fuel pricing challenges would need systemic improvements in Nigeria’s economic framework. NNPC’s ongoing collaboration with private refineries, such as Dangote’s, reflects the company’s strategic focus on ensuring a stable crude oil supply for domestic refining, which could pave the way for improved fuel availability and potentially stabilize prices in the long run.<!--nextpage-->
