The Nigerian National Petroleum Company Limited (NNPCL) has clarified that it has not ceased the importation of petroleum products into the country and would continue to import if necessary.
In a statement issued on Thursday, NNPCL spokesperson Olufemi Soneye explained that the company’s focus is on sourcing refined products locally but emphasized that importation remains an option when required.
Soneye addressed recent remarks made by the Group Chief Executive Officer (GCEO), Mele Kyari, at the Nigerian Association of Petroleum Explorationists (NAPE) conference, stating that Kyari’s comments had been misunderstood.
“The GCEO’s statement, ‘Today, NNPCL does not import any product; we are only taking from domestic refineries,’ should not be construed to mean that NNPCL will no longer import fuel. While we prioritize sourcing products from domestic refineries, this depends on economic viability,” Soneye said.
He further explained, “If local supply is cost-effective, it will be preferred. However, the same principle applies to other marketers, who will also evaluate costs before deciding whether to buy locally or import.”
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Soneye reaffirmed that economic considerations would guide NNPCL’s decisions on whether to source refined petroleum from local refineries or import. He clarified that Kyari’s statement was not a declaration of the end of fuel importation.
“It is important to note that the authority to grant import licenses lies with the Nigerian Midstream and Downstream Petroleum Regulatory Authority, as stipulated by the Petroleum Industry Act (PIA). Additionally, NNPCL controls less than 30 per cent of the market, as mandated by the PIA, which ensures competition and prevents monopolies,” he said.
Soneye emphasized that the deregulated market structure requires all players, including domestic refiners, to compete on price and value. “Patronage cannot be legislated in a deregulated sector,” he added.
At the NAPE conference, Kyari explained the potential economic benefits of increased local refining, particularly in addressing foreign exchange (FX) challenges.
“There are claims that NNPCL does not want to sell crude to refineries in naira as a form of sabotage. Far from it! Selling crude in naira to local refineries and buying their products in naira is a net-zero gain. It makes no difference to us,” Kyari said.
He highlighted the broader impact of reducing fuel imports on the nation’s economy. “If you can take fuel importation under control, it eliminates speculation around FX required for domestic product supply, thereby controlling inflation and reducing FX pressure,” Kyari noted.
Kyari commended President Bola Tinubu’s initiatives to stabilize the economy, adding, “This approach would stabilize the exchange rate for 50 per cent of our imports. It’s a great initiative.”
Soneye also pointed out NNPCL’s ongoing investments in Compressed Natural Gas (CNG) infrastructure as part of its efforts to enhance energy security and affordability.
He concluded by reaffirming NNPCL’s commitment to balancing local production and imports to meet the country’s energy needs efficiently.
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