September 12, (THEWILL) – The Nigerian National Petroleum Corporation (NNPC) has requested a permanent presence at the Dangote Refinery.
Vice President (Oil & Gas) of Dangote Group, Devakumar V.G. Edwin, who disclosed this on Thursday, said the national oil company has also requested office space.
This is aimed at ensuring that crude supplied to the refinery by the NNPC is processed efficiently in line with the agreement to supply the refinery crude oil in Naira and buy back the products in the same currency.
“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 the production, and buying back the products in Naira.
“We are still in talks with the government about receiving crude in Naira. The discussions are ongoing, and nothing has been finalised yet. Some unresolved issues include the pricing of crude, the pricing mechanism, and determining the appropriate exchange rate for the Naira,” he said.
Edwin also hinted that the President of Dangote Group, Aliko Dangote, had agreed to the Federal Government’s proposal to sell back products to the NNPC in Naira, despite the likelihood of financial losses.
He quoted Dangote as saying, “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.
“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.”
