Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), has dismissed allegations that the corporation is deliberately withholding crude oil sales to Dangote’s refinery in naira.
Gists9ja reports that Kyari clarified that such claims are unfounded and emphasized the net neutrality of the proposed transaction model.
In a recent statement, Kyari addressed growing rumors that NNPC was engaging in actions to undermine Dangote Refinery by refusing to sell crude oil in naira. He stated, “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.” According to Kyari, selling crude to a domestic refinery in naira and purchasing refined products in the same currency would result in no financial loss or gain for NNPC.
He further explained that the shift to naira-based transactions would have no significant impact, as foreign exchange would still be necessary for other imports. “If you stop the import and sell in naira, what you are simply doing is just a substitution,” Kyari said, calling it a settlement platform rather than a strategy with monetary benefits.
Kyari also praised the Nigerian government’s broader economic initiative aimed at reducing foreign exchange pressure, particularly in the area of petroleum product imports. “The biggest source of FX pressure in our country is the import of Premium Motor Spirit (PMS),” Kyari noted. He highlighted that by controlling the import of PMS and using local refineries, the country could eliminate speculation surrounding the naira and curb inflationary pressures.
He concluded by commending President Muhammadu Buhari for introducing the initiative, which he believes will stabilize the exchange rate for domestic product supply and control inflation. “This is a very great initiative,” Kyari stated. “We must commend the President for bringing this initiative.”
Kyari’s comments aim to clarify the NNPC’s position amidst mounting scrutiny and reinforce the corporation’s support for the government’s strategy to enhance the local economy and manage foreign exchange pressures.
