NNPC Ltd. boss, Mele Kyari, thrashes allegation of sabotaging Dangote Refinery as baseless

Mr. Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd.), has refuted claims that the company is unwilling to sell crude oil to Dangote Refinery in naira, dismissing it as a baseless allegation.

Kyari explained that selling crude to domestic refineries in naira and buying products from them in the same currency results in a net zero gain, making it a neutral transaction.

He clarified that there are no sabotage intentions behind NNPC Ltd’s position on crude oil sales to Dangote Refinery.

He explained that the company’s primary focus is on ensuring the stability and growth of Nigeria’s petroleum industry.

The GCEO said: “There are too many claimants out there that the NNPC does not want to sell crude to the refinery in naira as a form of sabotage.

“Far from it! It makes no difference to us because if you sell crude to the domestic refinery in naira and you buy the product in naira from the domestic refinery, it’s a net zero gain. You lose nothing; you probably gain nothing.

“Otherwise, whatever you do, you still have to source foreign exchange to import if you have to import. So, if you stop the import and sell in naira, what you are simply doing is just a substitution.

“It’s a settlement platform, and we must commend the President for bringing this initiative.

“What it will do to our country is that the biggest source of FX pressure in our country is the import of PMS. It’s the highest value.

“That means if you can take that under control, it means that speculation around the naira to the extent of those FX that are required for domestic product supply will be eliminated.

“That means speculation will go, you would have controlled inflation, and you would have controlled the FX pressure because you would have settled the exchange rate for 50 percent of your imports.

“This is a very great initiative. I should commend the President for bringing this initiative.”

Kyari praised President Tinubu’s initiative to promote a naira settlement for domestic crude oil sales, citing its potential benefits for the economy.

Persecondnews reports that by controlling the import of Premium Motor Spirit (PMS), the country can reduce foreign exchange pressure, speculation, and inflation.

This, in turn, would stabilize the exchange rate for up to 50 percent of Nigeria’s imports.

Kyari reassured the public of NNPC Ltd’s commitment to transparency and cooperation with regulatory agencies.