Highlight

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

"Kyari clarified that NNPC Ltd’s stance on crude oil sales to Dangote Refinery is not driven by sabotage intentions. He explained that the company's primary focus is on ensuring the stability and growth of Nigeria's petroleum industry"

154

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.

Leave a comment

Related Articles

Rodri Brushes Off Vinicius, Real Madrid at Ballon d’Or ceremony

Recently crowned 2024 Ballon d’Or winner Rodri has downplayed the absence of...

Super Eagles Land in Abidjan, Gear Up for Benin Republic Clash

The Nigerian national football team, the Super Eagles, has arrived in Abidjan,...

Nigeria signs $1.2bln deal with CNCEC to revive aluminium smelter

Nigeria has taken a significant step towards reviving its dormant aluminium smelter...

VP Shettima Arrives in Benin City for Edo Governor’s Inauguration

Vice President Kashim Shettima has arrived in Benin City, Edo State capital,...

Breaking: Powerful explosion rocks Jos, many people feared dead

A devastating explosion shook the city of Jos on Tuesday morning, sending...

Infanticide: US places $25,000 bounty on fleeing Nigerian parent

The United States of America has offered a $25,000 reward for anyone...

Tinubu, Abiodun, Sanwo-Olu, others extol Pastor Tunde Bakare at 70

Pastor Tunde Bakare, the founder of Citadel Global Community Church, is a...

NNPC Ltd. Unveils Plan to Resolve Nigeria’s Energy Trilemma

Nigerian National Petroleum Company Limited (NNPC Ltd) Group CEO, Mr. Mele Kyari,...

Breaking: IPMAN Secures Direct Supply Deal with Dangote Refinery, Promises Steady, Affordable Fuel Nationwide

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced a landmark...

“Operation Sweep”, FCT demolition squad, faces backlash from residents, Wike reacts

The recent demolition exercise by “Operation Sweep”, a task force set up...

Nov. 16 Ondo guber poll: Sensitive election materials arrive

Ahead of the Saturday, October 16 governorship poll in Ondo State, sensitive...

China’s imports from Nigeria soar to $15.1bln, 36.1% increase

China’s imports from Nigeria have reached an all-time high of $15.1 billion...

Vandals destroy TCN towers, disrupt power supply in Abuja

The Transmission Company of Nigeria (TCN) has reported a fresh attack on...

Amid opposition, Kano Rep. Jibrin promises to push Tinubu’s tax reform bills through in NASS

In spite of growing opposition to President Bola Tinubu’s controversial tax reform...

FCT Police bust notorious car theft syndicate, arrest suspect, recover 3 vehicles

The Federal Capital Territory (FCT) Police has confirmed the arrest of a...

Osimhen’s Brace Powers Galatasaray to 3-2 Win Over Samsunspor

Nigerian striker Victor Osimhen led Galatasaray to a thrilling 3-2 victory over...

Amotekun, Vigilante groups barred from Ondo gov. election – IGP Egbetokun

The Inspector-General of Police Kayode Egbetokun has banned Amotekun, Vigilante Groups, and...

NPA firefighters extinguish APMT crane fire, no fatalities recorded

The Nigerian Ports Authority (NPA) firefighters, with assistance from other sister agencies,...

Nigeria’s Okonjo-Iweala set to serve second term as WTO DG unopposed

The World Trade Organization (WTO) has confirmed that Dr. Ngozi Okonjo-Iweala will...