The Nigerian National Petroleum Corporation (NNPC) Limited has requested office space for approximately 10 staff members at the Dangote Refinery as part of their crude supply agreement.
Daily Report Nigeria reports that this revelation was made by Devakumar V. G. Edwin, Vice President, Oil & Gas, of the Dangote Group, during an X (Twitter) Space event hosted by Nairametrics titled “Unlocking How Dangote Refinery Shapes Price.”
According to Edwin, NNPC will supply the crude, oversee production, and purchase the products in Naira, necessitating a permanent team presence at the refinery.
READ ALSO:Â 5 Things to Know About Unusual Appearance of Dangote Refinery Petrol
The discussions with NNPC focused on a new crude supply model where the refinery will buy crude from the government in Naira and sell PMS in the same currency, rather than in dollars.
Edwin pointed out that the talks are ongoing, with unresolved issues including crude pricing, pricing mechanisms, and determining the appropriate Naira exchange rate.
Notably, he revealed Aliko Dangote has agreed to sell products from NNPC to the government in Naira, despite potential financial losses, to support the country’s foreign exchange needs and stabilize the Naira’s value.
Dangote said:
“I am willing to take this loss in the interest of the country. I don’t mind.
“The country is in bad shape. Someone has to take certain risks, and I am ready to face this loss, no matter how significant it may be.”
Leave a comment