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Fuel Imports Not Halted: NNPC Clarifies Stance on Domestic Sourcing and Misinterpreted Remarks

Written by Agboola Oluwafemi on November 15, 2024

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The Nigerian National Petroleum Company Limited (NNPC Ltd) has clarified that it has not stopped importing petroleum products. In a statement on Thursday, spokesperson Olufemi Soneye explained that while NNPC prioritizes local sourcing, imports will continue when necessary.

Soneye addressed comments by NNPC’s Group CEO, Mele Kyari, at the Nigerian Association of Petroleum Explorationists (NAPE) conference, noting that Kyari’s statement, “Today, NNPC does not import any product; we are only taking from domestic refineries,” was accurate but misinterpreted. “The GCEO’s statement highlights our emphasis on domestic sourcing, but this is contingent upon economic viability,” Soneye clarified.

He added that decisions on sourcing will depend on cost-effectiveness and that the authority to issue import licenses lies with the Nigerian Midstream and Downstream Petroleum Regulatory Authority. “NNPC Ltd controls less than 30% of the market, ensuring competition and a free-market system,” Soneye noted.

Soneye commended government efforts to improve energy security and affordability, citing investments in Compressed Natural Gas infrastructure. At the conference, Kyari refuted claims that NNPC sabotages local refineries by refusing to sell crude oil in naira, emphasizing that selling crude or refined products in naira has no financial difference.

Kyari also stressed the economic benefits of reducing fuel imports. “Importing PMS pressures foreign exchange, but controlling this reduces speculation on the naira, stabilizes inflation, and eases forex pressures,” he said. “This initiative, championed by the President, offers significant benefits for the country.”