The Nigerian National Petroleum Corporation (NNPC) Limited has requested office space for about 10 of its staff at the Dangote Refinery as part of their ongoing crude supply agreement. The move is part of a broader collaboration between the two entities, with the NNPC set to oversee the supply of crude to the refinery. This request aligns with NNPC’s role in overseeing production activities and the purchase of refined products.…..For More READ THE FULL ARTICLE HERE ▶▶...CLICK HERE TO CONTINUE READING.>>
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The details of this arrangement were shared by Devakumar V. G. Edwin, Vice President, Oil & Gas of Dangote Group, during an event. Edwin spoke at a Twitter Space event organized by Nairametrics, titled “Unlocking How Dangote Refinery Shapes Price.” During the discussion, Edwin highlighted the strategic importance of NNPC’s involvement in the refinery’s operations. According to him, the NNPC’s role includes both overseeing the supply chain and ensuring that products are paid for in Naira, rather than foreign currency.
The event also provided insights into the progress of Premium Motor Spirit (PMS) production at the Dangote Refinery. Edwin discussed the complexities involved in the crude supply deal, noting that both parties are working to ensure the seamless production of petrol. The collaboration with NNPC is expected to enhance the refinery’s output and support the Nigerian government’s efforts to stabilize the local fuel market.
Despite these positive developments, Edwin revealed that Aliko Dangote, founder of the Dangote Group, has accepted financial risks associated with the deal. According to Edwin, Dangote agreed to sell products from NNPC to the Nigerian government in Naira, despite potential financial losses due to exchange rate fluctuations. This decision was made in recognition of the country’s urgent need for foreign exchange stability.
Dangote’s willingness to take on these risks underscores his commitment to supporting the Nigerian economy. He acknowledged that selling products in Naira could lead to financial losses, particularly when the exchange rate worsens. However, Dangote emphasized that he is willing to absorb these losses for the greater good of the country.
Dangote added: “I am willing to take this loss in the interest of the country. I don’t mind.
“The country is in bad shape. Someone has to take certain risks, and I am ready to face this loss, no matter how significant it may be.”…..For More READ THE FULL ARTICLE HERE ▶▶
