NNPC Requests Office Space for Employees at Dangote Refinery in Crude Oil Supply Agreement

The Nigerian National Petroleum Corporation (NNPC) Limited has requested dedicated office space for approximately 10 employees at the Dangote Refinery as part of an agreement linked to crude oil supply.

During a X Space event hosted by Nairametrics, titled “Unlocking How Dangote Refinery Shapes Price,” Devakumar V.G. Edwin, Vice President of Oil & Gas at Dangote Group, revealed this development.

He explained that NNPC made the request due to its role in supplying crude oil, monitoring the production process, and repurchasing refined products in Naira.

“NNPC has informed us they intend to permanently station a team of 6 to 10 people at our refinery,” Edwin stated. “They’ve asked us to provide office space as they will be supplying crude, overseeing production, and buying back products in Naira.”

The arrangement includes purchasing crude from the government in Naira and selling Premium Motor Spirit (PMS) in the same currency, rather than in dollars.

Edwin further noted that negotiations with the government are ongoing, particularly around the pricing structure for crude oil, the pricing mechanism, and the Naira exchange rate to be applied.

He stressed that no final agreement has been reached, with several key points still under discussion.

Speaking on behalf of the Dangote Group, Edwin mentioned that Aliko Dangote agreed to the Federal Government’s proposal to sell NNPC’s products back to the government in Naira, despite potential financial losses.

Edwin quoted Dangote as saying, “We are going to accept this because the country urgently needs foreign exchange, and the value of the Naira is deteriorating daily.

“I understand there will be losses because when we sell the product and convert it to dollars, the exchange rate may have worsened.

“I am willing to take this loss in the interest of the country. I don’t mind. The country is in bad shape, and someone has to take certain risks. I am ready to face the loss, no matter how significant it may be.”