NNPCL has stopped importing refined petroleum products – Kyari

The Group Chief Executive Officer, Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, has said the company has stopped importing refined petroleum products.

Speaking at the 42nd Nigerian Association of Petroleum Explorationists (NAPE) annual international conference and exhibition in Lagos, on Monday, Kyari said the company now gets petroleum products from Dangote Refinery Limited.

The NNPCL boss denied media reports that the company doesn’t support local refineries.

“The point is very far from it and I’m going to speak to it straight. We are very proud part-owners of Dangote refinery, no doubt about it,” he said.

The NNPCL boss highlighted that it was beneficial to supply crude oil to local refineries, adding that the company needed no persuasion to make such a move.

“We saw an opportunity to log supply to the domestic refinery, not just Dangote but any other refinery that operates in the country, so it was a very informed business decision.

“Therefore, from day one, we knew that it is to our benefit to supply crude oil to the domestic refinery, so we don’t need to be persuaded; we don’t need anyone to talk to us, there is no need for any pressure from the streets for us to do this. We are already doing this,” he said.

Amid calls for the domestication of Nigeria’s crude oil, Kyari highlighted the need to consider pricing.

He denied claims of sabotaging Dangote Refinery Limited by not selling crude oil in naira to the refinery.

“There are too many claimants out there, that the NNPC does not want to sell crude to the refinery in naira as a form of sabotage. Far from it!” he said.

“It makes no difference to us because if you sell crude to the domestic refinery in naira and you buy the product in naira from the domestic refinery, it’s a net zero gain. You lose nothing, you probably gain nothing.

“Otherwise, whatever you do, you still have to source foreign exchange to import if you have to import.

“So, if you stop the import and sell in naira, what you are simply doing is just a substitution. It’s a settlement platform and we must commend the President for bringing this initiative.

“What it will do to our country is that the biggest source of FX pressure in our country is the import of PMS. It’s the highest value.

“That means if you can take that under control, it means that speculation around the naira to the extent of those FX that is required for domestic product supply will be eliminated.

“That means speculation will go, you would have controlled inflation, and you would have controlled the FX pressure because we would have settled the exchange rate for 50 per cent of your imports. This is a very great initiative.”