NNPC Orders Marketers to Halt Petrol Imports, Cites Dangote Refinery Capacity

The Nigerian National Petroleum Company Limited (NNPC) has issued a directive to oil marketers, instructing them to cease the importation of petrol, citing the capacity of the Dangote Refinery to fulfill domestic fuel demands.

This decision, made public following a high-level meeting in Abuja, has sent ripples through the oil and gas sector, raising significant concerns among stakeholders about the implications for supply stability across the nation.

At the meeting, which included NNPC Group CEO Mele Kyari, representatives from the Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), and officials from other industry players, the NNPC made it clear that henceforth, all petrol supplies would be contingent on the Dangote Refinery’s output.

An official present at the meeting revealed, “NNPC emphasized that, moving forward, no marketer would be allowed to import petrol without specific clearance tied to Dangote’s capacity.”

While the move is seen as a strategic attempt to boost local production, it has sparked concern within the industry.

Marketers have questioned whether the Dangote Refinery, which has only recently begun its full operations, can reliably meet the fluctuating demand for fuel in a country of over 200 million people.

In addition to concerns about supply consistency, the payment structure proposed by Dangote Refinery has become a point of contention.

The refinery insists on advance payment for its products, a significant departure from the traditional model where marketers settle payments upon product arrival at depots.

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One marketer, speaking on condition of anonymity, explained, “Paying upfront will strain the financial liquidity of smaller players in the market. We’ve been accustomed to a post-delivery payment system that better suits our cash flow cycles.”

Despite the challenges, Dangote Refinery has made strides in refining gasoline to meet global quality standards, with its petrol now containing a sulfur level of less than 10 ppm, compared to the 50 ppm typical of imported petrol.