NNPC stops exclusive deal with Dangote Refineries

The Nigerian National Petroleum Company Limited (NNPCL) has ended its exclusive purchase agreement with Dangote Refinery. 

This initiative aims to promote competition and improve supply chain stability, with marketers now able to negotiate prices directly with Dangote Refinery. 

NNPC previously bought petrol from Dangote at N898.78 per litre, selling to marketers at N765.99 per litre, absorbing a N133 per litre subsidy. 

NNPC lifted about 103 million litres of petrol from Dangote Refinery between September 15 and 30. The refinery was able to load 2,207 of the 3,621 trucks sent to it within the period under review. 

NNPC said that the Dangote Refinery and any other domestic refinery were free to sell directly to any marketer on a willing buyer, willing seller basis, which is the current practice for all fully deregulated products such as diesel, aviation fuel, and kerosene.