The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, has firmly stated that the company is not working against the prosperity of local refineries in Nigeria.
Kyari made this declaration while outlining the vision for the country’s energy future at the opening ceremony of the 42nd Nigeria Association of Petroleum Explorationists (NAPE) Annual International Conference and Exhibition in Lagos on Monday.
The event was themed: “Resolving the Nigeria Energy Trilemma: Energy Security, Sustainable Growth and Affordability.”
Kyari’s comments come amid recent controversies involving oil marketers, the Dangote Refinery and most especially the resent protest by the Nigerian Coalition of Civil Society Organisations (NICOSO) demanding demanding reps probe into Alleged Refineries Sabotage.
Adebayo, one of the spokesperson for the protest said, “Nigerian industrialists, such as Aliko Dangote, have invested heavily in local refineries to curb Nigeria’s reliance on imported fuel. The Dangote Refinery represents a transformative opportunity for energy independence and economic growth. However, instead of supporting these efforts, the cabal at the NNPCL has actively hindered local refinery operations, prioritising imported PMS and discouraging local refining. This calculated sabotage deters investors, limits job creation, and keeps Nigeria locked in economic dependency.”
During the event, Kyari, who served as the special guest of honor at the event, emphasized that the NNPCL is not sabotaging domestic refineries. He also clarified that NNPCL is a part-owner of the Dangote Refinery, pointing out that this investment is a strategic move to strengthen the country’s domestic fuel supply.
In a recent interview with Bloomberg, Aliko Dangote, the owner of the Dangote Refinery, revealed that NNPCL was originally meant to take a 20% stake in the refinery. However, this was later reduced to 7.2%.
Dangote explained that the initial deal was valued at $2.79 billion, with an upfront payment of $1 billion. After renegotiating the terms, the NNPCL opted to lower its equity share, which Dangote referred to as a “big mistake” but confirmed that the agreement has now been finalized with Dangote Group holding the majority of the shares.
“We agreed with them and we gave them a good deal. Well, we structured an agreement. The first agreement was that they would pay us $1 billion as part of a deal worth about $2.79 billion. They paid that $1 billion roughly a year and a half ago. The balance of the payment was to be split into two portions:
“The first portion is every time they supplied us with crude (around 300,000 barrels), we would deduct $2 from the balance until the debt was paid off.
“The other portion would come out of their profits.
“However, the NNPC opted out of this structure. They got confused, or maybe there was some misunderstanding. They no longer wanted the crude deduction arrangement and preferred to pay the remaining balance in cash,” Dangote said.
In response, Kyari reiterated that the NNPCL is set to collaborate with private refineries to ensure affordable and sustainable petroleum products supply in the country. He also mentioned plans to engage in Naira-for-crude transactions, which will help stabilize the local currency and regulate the foreign exchange markets.
Kyari further stated that NNPCL plans to expand gas infrastructure, including major projects like the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline and the Obiafu-Obrikom-Oben (OB3) Gas Pipelines.
Additionally, the company is committed to developing cleaner energy options such as Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG).
Kyari also noted that NNPCL has ceased importing refined petroleum products and is now sourcing its fuel solely from domestic refineries, including the Dangote Refinery. “Today, NNPC does not import any product, we are taking only from domestic refineries,” Kyari said.
Kyari continued, highlighting the company’s plans to deliver 12 Compressed Natural Gas (CNG) mother stations and mini LNG plants as part of efforts to boost the country’s gas supply capacity. These efforts are in line with NNPCL’s goal to increase the domestic gas supply, currently at 1.6 billion standard cubic feet per day.
“The energy trilemma is a profound responsibility we shoulder as stewards of Nigeria’s energy future. NNPC Ltd. is working tirelessly to improve our supply chain, develop new refining capacities and expand our retail network,” Kyari stated.
He explained that the company’s efforts to enhance domestic energy access would be accelerated in the next 3 to 6 months, with significant project launches, including CNG mother stations, mini-LNG plants, and additional CNG daughter stations.
Kyari also commended President Bola Tinubu’s efforts to reduce fuel imports and bolster Nigeria’s local refining capacity. He emphasized the need for collaboration, innovation, and technology to achieve Nigeria’s energy goals.
“Resolving the energy trilemma requires bold ideas, shared knowledge, and collective determination. Together, let us build a Nigeria where energy is secure, sustainable, and affordable for all,” he added.
Regarding NNPCL’s mandate under the Petroleum Industry Act (PIA) of 2021, Kyari stated that the company has fostered key partnerships and investments to enhance local production and generate revenue for economic diversification.
He reaffirmed that the NNPCL remains committed to ensuring energy security in Nigeria and will continue to work on expanding both its refining capacity and the nation’s energy infrastructure.
