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The Nigerian National Petroleum Corporation (NNPC) Limited has requested permanent office space for its staff at the Dangote Refinery.
This move is part of a crude supply agreement between NNPC and the refinery. Under this agreement, NNPC will oversee the production of Premium Motor Spirit (PMS), or petrol, while supplying crude and buying back refined products in naira.
Speaking at a recent X (formerly Twitter) Space event organised by Nairametrics, Devakumar V. G. Edwin, Vice President of Oil & Gas at Dangote Group, confirmed the request.
He revealed that NNPC intends to permanently station a team of six to ten employees at the refinery to manage operations linked to the crude supply agreement.
"NNPC has informed us that they intend to permanently station a team of 6 to 10 people 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," Edwin stated.
NNPC, Dangote Refinery in talks for new supply model
He further explained that Dangote Refinery and the Nigerian government are discussing a new crude supply model that involves buying crude in naira instead of dollars.
This model aims to reduce reliance on foreign currency—however, several details, including crude pricing and the naira exchange rate, are under discussion.
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Edwin also revealed that Aliko Dangote has agreed to the government's proposal despite the financial risks involved.
"Dangote said we are going to accept this because the country desperately needs foreign exchange. I am willing to take this loss in the interest of the country. I don't mind," Edwin quoted Dangote.
These discussions mark a significant shift in the way crude is supplied and refined in Nigeria, with NNPC and Dangote Refinery seeking solutions amid foreign exchange concerns.