NNPC Drops Bombshell
QuitsSole Off-Taker Role with Dangote Refinery
By Amb Chidiebere Ndukwe, Legislative Spotlight Correspondent
Abuja - In a shocking move, the Nigerian National Petroleum Company (NNPC) has announced its decision to relinquish its sole off-taker role with the Dangote refinery, citing an "unbearable burden" from distributing Premium Motor Spirit (PMS).
Sources close to the development revealed to this newspaper that NNPC's middleman role has become unsustainable, particularly as the company grapples with a staggering $6 billion debt owed to international fuel suppliers.
This decision comes on the heels of Aliko Dangote's call for the federal government to halt subsidy payments, which he described as unsustainable. The billionaire businessman's plea seems to have paved the way for NNPC's exit from the sole off-taker arrangement.
Initially, the federal government had stipulated that the Dangote refinery would sell petrol exclusively to NNPC, which would then distribute it to other marketers. However, the House of Representatives intervened, urging the government to allow independent marketers to purchase petrol directly from the refinery.
Industry insiders predict that NNPC's withdrawal will lead to an immediate surge in fuel prices nationwide, as marketers pass on additional costs to consumers. Nevertheless, experts foresee prices stabilizing in the coming days as market competition and supply chains adjust.
The development raises questions about the future of Nigeria's fuel subsidy regime and the government's plans to address the financial strains plaguing NNPC.
"The NNPC's decision is a welcome development, as it will promote competition and stabilize supply chains," said an industry analyst who wished to remain anonymous.
As the nation awaits the full implications of this decision, one thing is certain: Nigeria's fuel landscape is on the cusp of significant change.
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