The Nigerian National Petroleum Comany Limited (NNPCL) has asked for office space for around 10 of its staff at the Dangote Refinery as part of their crude supply deal.
Devakumar V. G. Edwin, Dangote Group’s Vice President of Oil & Gas, explained that NNPCL’s request is related to their role in providing crude oil, overseeing production, and buying the refined products in Naira.
“NNPCL has informed us that they intend to station a team of 6 to 10 people permanently at our refinery,” Edwin said.
“They’ve asked us to provide office space for them since they will be supplying the crude, overseeing the production, and buying back the products in Naira.”
Edwin also highlighted that discussions with NNPCL are focused on a revised crude supply model. Under this model, the refinery would acquire crude oil from the government and sell gasoline, with both transactions being conducted in Naira rather than dollars.
“We are still in talks with the government about receiving crude in Naira. The discussions are ongoing, and nothing has been finalized yet.
“Some unresolved issues include the pricing of crude, the pricing mechanism, and determining the appropriate exchange rate for the Naira,” Edwin added.
He noted that Aliko Dangote had agreed to the Federal Government’s request to sell products from NNPCL to the government in Naira, despite the possibility of incurring financial losses from this arrangement.
“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,” he added.
Earlier, Aliko Dangote had said, “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,” Edwin quoted Dangote to have said.
“I am willing to take this loss in the interest of the country. I don’t mind.
“The country is in bad shape. Someone has to take certain risks, and I am ready to face this loss, no matter how significant it may be.
