Social media users have reacted to the Nigerian National Petroleum Company (NNPC) Limited’s request for an office space at the Dangote Refinery as part of their crude supply deal.
Users on various platforms woke up to viral reports that the NNPC made the demand, stating that they would be overseeing the supply of crude, production, and buying back products in Naira.
Devakumar V. G. Edwin, Vice President of Oil & Gas at Dangote Group, said in a post on X: “NNPC has informed us that they intend to station a team of 6 to 10 people permanently at our refinery. They’ve asked us to provide office space for them since they will be supplying the crude, overseeing production, and buying back the products in Naira.”
Furthermore, Edwin noted that discussions with NNPC are about a new model for crude supply where the refinery will buy crude from the government in Naira and sell PMS in the same currency, rather than in dollars, as reported by Nairametrics.
Edwin added: “We are still in talks with the government about receiving crude in Naira. The discussions are ongoing, and nothing has been finalized yet. Some unresolved issues include the pricing of crude, the pricing mechanism, and determining the appropriate exchange rate for the Naira.”
Edwin explained that Aliko Dangote had agreed to the Federal Government’s proposal to sell products from NNPC to the government in Naira, despite the likelihood of financial losses.
“Dangote said we are going to accept this because the country desperately needs foreign exchange, and the value of the Naira is deteriorating every day. I understand that I am going to take a loss because by the time we sell the product and convert it to dollars, the exchange rate may have worsened,” Edwin quoted Dangote as saying.
Dangote added: “I am willing to take this loss in the interest of the country. I don’t mind.”
SOURCE: mynigeria.com