The Nigerian National Petroleum Company Limited, NNPCL and major oil marketers are discussing how to stop petrol imports by boosting reliance on Dangote Refinery‘s output.
Stakeholders have agree to build confidence in Dangote Refinery’s capacity to satisfy the country’s fuel demand and reduce fuel imports.
The topic was top on the agenda at a meeting organized by NNPCL and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, representatives of Major Oil Marketers Association of Nigeria, Depot and Petroleum Products Marketers Association of Nigeria, and key industry players such as 11 Plc, Matrix, and AA Rano, among others, at the NNPCL Towers in Abuja last week.
“The discussions are not yet concluded. Some stakeholders who were absent need to be brought into the conversation before anything can be finalized. The information circulating was leaked. Once all parties are in agreement, we can make an announcement,” said a source.
Another participant in the meeting added that NNPCL stressed that, moving forward, no marketer would be allowed to import petrol without specific clearance tied to Dangote Refinery’s production capacity.
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While this move is seen as strategic, it has raised concerns among oil marketers, who question Dangote Refinery’s ability to consistently supply the market and maintain a reliable distribution network across Nigeria’s vast territory. Despite its significant capacity, marketers are uncertain whether the refinery’s production and logistics infrastructure can handle the fluctuating demand.
Another contentious issue discussed was Dangote Refinery’s payment model. Unlike the traditional system where marketers pay upon delivery, Dangote is insisting on advance payments. This proposal has raised concerns, particularly among smaller players in the downstream sector, who worry about the financial pressure this would create.
A stakeholder remarked, “Paying upfront would put significant strain on marketers, especially those with limited capital. For years, we have operated on a post-delivery payment system, which better aligns with our cash flow needs.”
Credible News.ng
