As part of their ongoing crude supply agreement, the Nigerian National Petroleum Corporation (NNPC) Limited has reportedly requested office space at the Dangote Refinery for approximately ten of its employees. This information was provided by Vanguard. It is part of a larger collaboration between the two organizations, and the National Petroleum Corporation (NNPC) is going to be in charge of monitoring the supply of crude to the refinery. It is consistent with the role that NNPC plays in supervising production activities and the acquisition of refined products that this request is being made.
During a gathering, Devakumar V. G. Edwin, who is the Vice President of Oil and Gas for the Dangote Group, divulged the specifics of this arrangement. With the title “Unlocking How Dangote Refinery Shapes Price,” Edwin delivered a presentation at a Twitter Space event that was organized by Nairametrics. During the course of the conversation, Edwin drove home the point that the involvement of NNPC in the refinery’s operations is of critical strategic importance. In his opinion, the National National Petroleum Corporation (NNPC) is responsible for both monitoring the supply chain and ensuring that the payment for goods is made in Naira rather than in a foreign currency.
In addition, attendees were able to gain an understanding of the development of the Premium Motor Spirit (PMS) production process at the Dangote Refinery. Edwin elaborated on the complexities that are associated with the crude supply deal, pointing out that both parties are working to ensure that the production of petrol is proceeding without any interruptions. It is anticipated that the collaboration with NNPC will have the effect of increasing the refinery’s output and providing support for the efforts of the Nigerian government to stabilize the local fuel market.
Edwin disclosed that Aliko Dangote, the founder of the Dangote Group, has already accepted the financial risks that are associated with the deal, despite the fact that these positive developments have took place. Dangote reportedly agreed to sell products from NNPC to the Nigerian government in Naira, despite the possibility of incurring financial losses due to fluctuations in the exchange rate. Edwin claims that this agreement was made. The urgent need for the country to maintain stability in its foreign exchange market was taken into consideration when this decision was made.
The fact that Dangote is willing to take on these risks demonstrates his dedication to bolstering the economy of Nigeria. He acknowledged that engaging in the sale of products denominated in Naira could result in monetary losses, particularly in the event that the exchange rate deteriorated. Dangote, on the other hand, emphasized that he is willing to take on these losses for the sake of the greater good of the nation.
Dangote continued by saying, “I am willing to take this loss in order to represent the country’s best interests.” It doesn’t bother me at all.
“The state of the nation is unfavorable. It is necessary for someone to take certain risks, and I am prepared to make the sacrifice of this loss, regardless of how significant it may be.