NNPC Denies Sole Distributor Role for Dangote Refinery Products

NNPC Denies Sole Distributor Role for Dangote Refinery products
Mele Kyari

The NNPC also addressed concerns raised by the Muslim Rights Concern (MURIC), asserting that the organization had misunderstood the situation

Abuja, Nigeria – The Nigerian National Petroleum Company Limited (NNPC Ltd) has refuted claims that it is the sole distributor of petroleum products from the Dangote Refinery.

The NNPC clarified that the pricing of petroleum products, including those from the Dangote Refinery Limited (DRL), is determined by market forces and not dictated by any exclusive arrangement.

In a statement obtained by REPORT AFRIQUE, NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, explained that recent changes in petrol prices do not affect DRL or any other domestic refinery’s access to the Nigerian market. He emphasized that refineries, including the Dangote Refinery, are free to sell their products to any marketer on a willing buyer, willing seller basis.

“The pricing of petroleum products from any refinery, including the Dangote Refinery, is determined by global market forces,” Soneye stated. “If current prices are perceived as high, it presents an opportunity for refineries to offer lower prices in the Nigerian market.”

He further clarified that domestic refining does not necessarily guarantee lower prices when compared to global parity pricing frameworks. The NNPC Ltd would only purchase refined petrol from DRL if market prices are higher than Nigeria’s pump prices.

The NNPC also addressed concerns raised by the Muslim Rights Concern (MURIC), asserting that the organization had misunderstood the situation. Soneye stressed that NNPC, as a business stakeholder, has no desire to be the sole offtaker for any refinery in a deregulated market, including Dangote Refinery.

“The notion of NNPC Ltd becoming a sole offtaker does not arise,” Soneye said. “We advocate for fair and transparent business practices, and any claims suggesting otherwise are flawed and could mislead the public.”

This clarification comes amid speculation about fuel shortages and pricing dynamics in the Nigerian market following the opening of the Dangote Refinery, in which NNPC holds a significant financial stake.


Copyright 2024 REPORT AFRIQUE (RA). Permission to use portions of this article is granted provided appropriate credits are given to www.reportafrique.com and other relevant sources.This Article is Fact-Checked. See Policy.
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