Nigeria’s petroleum products importation stops mid-2023 —Kyari

*The Nigerian National Petroleum Company (NNPC) Limited says the combined output of the  local refineries being revamped and Dangote Refinery will be enough to stop importation of petroleum products into the country

Isola Moses | ConsumerConnect

The Nigerian National Petroleum Company (NNPC) Limited has said  the importation of petroleum products into the country will cease by mid-2023.

ConsumerConnect reports Malam Mele Kyari, Group Managing Director and Chief Executive Officer (GMD/CEO) of NNPC Limited, hinted at this development during the State House Ministerial Briefing, organised by the Presidential Communications Team, Tuesday, August 30, 2022, in Abuja, FCT.

The NNPC GMD/CEO said that the combined output of Nigerian refineries being revamped and upcoming Dangote Refinery would be enough to stop importation.

He said: “Even if all the refineries are working today, you will still have a net deficit of Premium Motor Spirit (PMS) to import into this country.

“This is what it means, because our population has grown; demand has grown; the middle class has grown.”

Kyari also stated: “I am sure everybody here owns one or two cars; and as such, the volume of petroleum products we require in this country has grown exponentially.”

According to him, this is clearly exponential growth in our need for PMS in the Nigerian economy.

The NNPC Group Managing Director further said: “So, even if they all come, we are going to stop importation of petroleum products, but happily also, NNPC Limited owns 20 percent equity in the Dangote Refinery and we are very proud of this.”

Besides owning 20 percent equity in Dangote Refinery, the NNPC Limited has the right of first refusal to supply crude oil to that plant, he noted.

Kyari added: “But, we saw this energy transition challenge coming; we knew that time would come when you will look for people who will buy your crude oil, you will not find.

“And that means we have locked down the ability to sell crude oil for 33,000 barrels minimum by right for the next 20 years.

“By right also, we have access to 20 percent of the production from that plant.”

Dangote Refinery becomes operational mid-2023, says NNPC Chief

Kyari also expressed optimism that Dangote Refinery would become operational by the middle of 2023.

He stated that the upcoming refinery has a production capacity of 650, 000 barrels per day, with a different technology.

The NNPC CEO said: “Which means that it can crack the crude in a manner that you can have more gasoline than a typical refinery; that means the refinery has the ability to produce up to 50 million litres of PMS.

“So, the combination of that and our own ability to bring back our refinery will completely eliminate any importation of petroleum products into this country.

“This is very practical; this is possible; as a matter of fact, what we have done with our own refineries and the Dangote Refinery with many other small initiatives we have put in place—small, modular, condensate refineries that we are building.”

He further said: “If that happens, we are very optimistic it will happen; you will see that this country will now be a net exporter.’’

Kyari, therefore, expressed hope that he looks forward to Nigeria’s becoming a hub of export of petroleum products, not just to the West African region, but to the rest of the world.

The flow of supply of petroleum products will change by the middle of 2023, he added.