The Nigerian National Petroleum Company Limited (NNPC Ltd.) has responded to recent allegations made by the Muslim Rights Concern (MURIC), which claimed that NNPC Ltd. is undermining the Dangote Refinery and controlling the sale of Premium Motor Spirit (PMS) in a way that prevents lower prices in the Nigerian market.
MURIC also asserted that NNPC Ltd. has become the sole offtaker of products from the Dangote Refinery.
In a press release issued by NNPC Ltd.’s Chief Corporate Communications Officer, Olufemi Soneye, the company firmly denied the allegations, clarifying that the pricing of petroleum products from any refinery, including the Dangote Refinery, is determined by global market forces. NNPC Ltd. stated that recent changes in PMS prices do not hinder any domestic refinery from selling its products at competitive prices in the Nigerian market.
The NNPC Ltd. further emphasized that domestic refining does not necessarily guarantee lower prices compared to global market rates. The company reaffirmed that it will only offtake PMS from the Dangote Refinery if the market prices exceed Nigerian pump prices. However, the Dangote Refinery and other domestic producers are free to sell directly to marketers on a willing buyer, willing seller basis.
NNPC Ltd. also dismissed claims that it intends to become the sole distributor for any refinery, reiterating its commitment to a free market environment where all participants operate independently.
The company called on MURIC to verify facts before making public statements, warning that such unfounded claims have the potential to mislead Nigerians and create unnecessary tension.
NNPC Ltd. concluded by stating that it cannot undermine a business in which it holds a billion-dollar stake, referring to its investment in the Dangote Refinery.
