The Nigerian National Petroleum Corporation (NNPC) Limited has requested permanent office space for approximately 10 staff members at the Dangote Refinery.
This request is part of the crude supply agreement between NNPC and Dangote Refinery, where NNPC will supply crude oil, oversee production, and purchase refined products in Naira.
Devakumar V. G. Edwin, Vice President, Oil & Gas, of Dangote Group, revealed this information during an X (Twitter) Space event organized by Nairametrics, titled “Unlocking How Dangote Refinery Shapes Price.”
Edwin explained that NNPC’s team will be responsible for managing the crude supply, monitoring production, and purchasing refined products in Naira.
Edwin also discussed the ongoing negotiations with NNPC regarding a new crude supply model.
Under this model, Dangote Refinery will purchase crude oil from the government in Naira and sell refined products, such as Premium Motor Spirit (PMS), in the same currency.
This approach aims to reduce the reliance on dollars for transactions.
While the discussions are ongoing, several issues remain unresolved, including crude oil pricing, pricing mechanism, and determining the appropriate exchange rate for Naira.
Aliko Dangote, the founder of Dangote Group, has agreed to the Federal Government’s proposal to sell products from NNPC in Naira, despite the potential for financial losses.
Dangote acknowledged that this decision may result in losses due to the fluctuating exchange rate but is willing to take this risk in the interest of the country.
“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.” – Aliko Dangote
