Devakumar Edwin, the Vice President of Dangote Industries Limited, has announced that the Nigerian National Petroleum Commission (NNPC) will become the sole buyer of products from Dangote Refinery as it begins production.

According to Edwin, the NNPC is prepared to purchase all refinery outputs to meet the nation’s local demand for petroleum products.

“We are currently testing the gasoline, and soon, it will start flowing into the tanks,” Edwin stated. He also noted, “If no one buys it locally, we will export it, just as we’ve been doing with our aviation jet fuel and diesel.”

This development comes amid ongoing financial challenges for the NNPC. Tribune Online previously reported that the NNPC Limited admitted to owing a substantial debt to international oil traders, which has resulted in a fuel supply shortage for local distributors.

Recent reports reveal that the NNPC owes these traders approximately $6 billion in unpaid subsidies, prompting them to halt petrol supplies to the national oil company.

Although the NNPC initially denied these claims, it later acknowledged that its outstanding debts to suppliers have been a major contributor to the ongoing fuel scarcity across the country.

With the NNPC now positioned as the sole buyer of products from Dangote Refinery, this arrangement offers some relief to the national oil company as it continues to navigate its international financial obligations.

dre11:


https://tribuneonlineng.com/nnpc-to-become-sole-buyer-as-dangote-refinery-begins-production/

REDshouse:
This is a very bad move by NNPC ..why will NNPC buys from Dangote and not allow dangote a willing seller to sell fuel to willing buyer,

My deduction from this is that subsidy will still remain cos dangote will sell at 1000naira per litre to NNPC while NNPC sells to Nigeria at 568 naira per liter.. in the long run it wont be sustainable and thereby resulting in NNPC owing Dangote and creating another set of crisis ....

REDshouse:
This is a very bad move by NNPC ..why will NNPC buys from Dangote and not allow dangote a willing seller to sell fuel to willing buyer,

My deduction from this is that subsidy will still remain cos dangote will sell at 1000naira per litre to NNPC while NNPC sells to Nigeria at 568 naira per liter.. in the long run it wont be sustainable and thereby resulting in NNPC owing Dangote and creating another set of crisis ....

calios:
I thought they said the present administration has a plan against Dangote

REDshouse:
This is a very bad move by NNPC ..why will NNPC buys from Dangote and not allow dangote a willing seller to sell fuel to willing buyer,

My deduction from this is that subsidy will still remain cos dangote will sell at 1000naira per litre to NNPC while NNPC sells to Nigeria at 568 naira per liter.. in the long run it wont be sustainable and thereby resulting in NNPC owing Dangote and creating another set of ....
Pls what exactly do you suggest? I guess you are happy the way we are buying at higher price.