Nigerian National Petroleum Company Limited, NNPCL, has dismissed reports making the rounds that it has ceased importing refined petroleum products into the country. The company described such claims as inaccurate and misleading.
NNPCL was responding to a story that claimed that the company had ended fuel importation. And that NNPCL is now solely sourcing refined products from local refineries, including the Dangote Petroleum Refinery.
According to the report, the cessation of importation of petrol was made by the NNPC’s Group Chief Executive Officer, Mele Kyari. It quoted the GCEO to have said that at the Nigerian Association of Petroleum Explorationists conference in Lagos, themed: Resolving the Nigerian Energy Trilemma: Energy Security, Sustainable Growth and Affordability.
However, in a statement issued by the Chief Corporate Communications Officer,Femi Soneye, stated that Kyari was quoted out of context.
He noted that the GCEO’s statement, ‘Today, NNPC does not import any product; we are only taking from domestic refineries’, was taken out of context,”.
Soneye stated that the statement should not be construed to imply that NNPC Ltd. is obligated to be the sole off-taker of any refinery. Or that we will no longer import fuel.
“While NNPC prioritizes sourcing products from domestic refineries, this is contingent upon economic viability. If local supply is cost-effective, it will be preferred. But the same principle applies to other marketers, who will also evaluate total costs when deciding whether to buy locally or import,” he said.
Soneye noted that NNPC prioritizes local refining where it is cost-effective. But retains the flexibility to import if necessary.
He said, “Economic viability will guide NNPC Ltd. in its decisions on whether to source refined petroleum from local refineries or import.”
Soneye noted that there was nowhere in the statement where Kyari announced the end of fuel importation. Or mentioned N24 trillion contained in the report.
He stressed that the decision to grant import licenses lies with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). As stipulated in the Petroleum Industry Act (PIA).
The statement also pointed out that NNPC controls less than 30 per cent of the downstream market. Which is in line with the PIA’s provisions to promote competition and prevent monopolies.
“The law promotes a free-market system where competition drives efficiency and cost reduction, ensuring that consumers benefit. Domestic refiners must compete on price and value. As patronage cannot be legislated in a deregulated sector,” he said.
source: Premium Times
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