Nigerian National Petroleum Company Limited (NNPC) has directed oil marketers to cease the importation of petrol.
This decision is rooted in the confidence that the Dangote Refinery possesses the capacity to meet the nation's domestic fuel demands.
The directive was announced during a high-level meeting in Abuja, which included NNPC Group CEO Mele Kyari and representatives from major oil marketing associations and stakeholders.
The NNPC's announcement marks a pivotal shift in Nigeria's approach to fuel supply, emphasizing reliance on local production. As stated by an official present at the meeting, "NNPC emphasised that going forward, no marketer would be permitted to import petrol without specific clearance tied to Dangote’s capacity."
This strategic decision aims to conserve the substantial funds previously spent on fuel imports, which amounted to nearly $1.8 billion over a recent month-long period. However, the transition is not without its challenges.
Oil marketers have voiced concerns about the Dangote Refinery's ability to consistently supply and distribute fuel across Nigeria's vast network.
Additionally, the refinery's payment structure, which requires advance payments from marketers, has raised issues regarding cash flow and operational feasibility, particularly for smaller players in the downstream sector.
A stakeholder highlighted, "Paying upfront significantly increases financial pressure on marketers, particularly those with limited capital."
Despite these concerns, the NNPC remains optimistic about the potential benefits of this shift, including enhanced energy independence and improved market dynamics.
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