NNPC Requests Permanent Office Space for Staff at Dangote Refinery

The Nigerian National Petroleum Corporation (NNPC) Limited has requested office space for approximately 10 of its staff at Dangote Refinery as part of their crude supply arrangement.

Devakumar V. G. Edwin, Vice President of Oil & Gas at Dangote Group, revealed this during an X (Twitter) Space event hosted by Nairametrics, titled “Unlocking How Dangote Refinery Shapes Price.”

Edwin explained that NNPC made the request because they will be supplying the crude, managing production, and purchasing the products in Naira.

At the event, Edwin also provided an update on the production of Premium Motor Spirit (PMS), or petrol, at the refinery.

Edwin stated, “NNPC has informed us that they plan to station a team of 6 to 10 people permanently at our refinery.”

“They’ve requested that we provide office space for them, as they will be supplying the crude, overseeing production, and purchasing the products in Naira,” he added.

He further explained that the negotiations with NNPC involve a new model for crude supply where the refinery will buy crude from the government in Naira and sell PMS in the same currency, instead of in dollars.

Edwin noted, “We are still discussing the possibility of receiving crude in Naira. The talks are ongoing, and no agreements have been finalized yet.”

He mentioned that some unresolved issues include crude pricing, the pricing mechanism, and establishing the appropriate exchange rate for the Naira.

Edwin noted that Aliko Dangote had agreed to the Federal Government’s proposal to sell products from NNPC to the government in Naira, even though it might lead to financial losses.

“Dangote said we are going to accept this because the country desperately needs foreign exchange, and the value of the Naira is deteriorating every day,” Edwin explained.

He quoted Dangote as saying, “I understand that I am going to take a loss because, by the time we sell the product and convert it to dollars, the exchange rate may have worsened.”

Dangote added, “I am willing to take this loss in the interest of the country. I don’t mind. The country is in a difficult situation. Someone has to take certain risks, and I am ready to face this loss, no matter how significant it may be.”