“This is the first time NNPC has said it is terminating crude swap contracts. By importing less petrol, as private companies import the bulk, NNPC will be able to pay for its purchases in cash.”
The Group Chief Executive Officer of Nigerian National Petroleum Company, NNPC, Limited, Mele Kyari said NNPC’s monopoly on petrol supplies was ending and private firms could start importing as early as this month. He added that Nigeria’s total crude and condensate output was at 1.56 million barrels a day (bpd) as of Friday.
The move was part of Tinubu’s plans to deregulate the petrol market and reduce the burden of subsidy payment on government finances.
NNPC had been importing petrol from consortiums of foreign and local trading firms and repaying them with crude oil through the DSDP contracts since 2016, as it did not have enough money to import on a cash-and-carry basis.
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