Victor EzejaThe Nigerian National Petroleum Company Limited (NNPCL) and Dangote Petroleum Refinery & Petrochemicals have pledged to strengthen collaboration in boosting Nigeria’s oil and gas downstream sector to ensure the country’s energy security.
The goal is also to put measures that ensure a healthy competition, adequate supply and further reduction in prices of petroleum products, especially Premium Motor Spirit (PMS).
Join our WhatsApp ChannelThis commitment was made during a courtesy visit by the President/Chief Executive of Dangote Group, Alhaji Aliko Dangote, and his delegation to the Group CEO of NNPCL, Mr. Bashir Bayo Ojulari, and members of the company’s Senior Management Team at the NNPC Towers, on Thursday.
According to a statement by NNPCL Chief Corporate Communications Officer, Olufemi Soneye, the meeting focused on promoting mutually beneficial partnerships and fostering a healthy competition.
The NNPCL spokesman said Dangote pledged to collaborate with the new Management of the national oil company to ensure energy security for Nigeria.
The Africa’s richest man said his company is not competing with NNPCL, adding that the state-owned oil firm is part and parcel of their business.
Dangote, according to the statement, emphasised that what is needed now is deeper cooperation between the two organisations.
“There is no competition between us, we are not here to compete with NNPC Ltd. NNPC is part and parcel of our business, and we are also part of NNPC. This is an era of co-operation between the two organisations.” Dangote stated.
Analysts had observed that there appeared to be a rift between Dangote Refinery and NNPCL, especially under the previous management.
The NNPCL had in 2021 proposed a 20 per cent stake investment valued at $2.76 billion in the Dangote Refinery.
However, the Dangote Refinery management revealed last year that NNPCL invested only $1 billion into the 650,000 barrels per capacity refinery that cost $20 billion. It clarified that the investment amounts to a 7.24 per cent equity value.
The deal for supply of crude oil in naira was another area of rivalry between the two business organisations, as Dangote Refinery, at some point, complained about not getting supply of crude from the NNPCL as agreed, leading to suspension of sales of petroleum products in naira in March even before the six months of the initial deal expired.
However, analysts observed that the unhealthy rivalry appears to have waned with the new management at the state-owned energy company.
While congratulating the new NNPCL boss and the Senior Management Team on their appointments, Dangote acknowledged the enormity of the responsibility ahead, noting that the GCEO would be shouldering a monumental task, which he expressed confidence that, with the capable hands at his disposal in NNPC, the task is surmountable.
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In his remarks, the GCEO, Mr. Bashir Bayo Ojulari assured Dangote of a mutually beneficial partnership anchored on healthy competition and productive collaboration.
Ojulari highlighted the exceptional caliber of talent he met in NNPCL, describing the workforce as dedicated, highly skilled, and hardworking professionals who are consistently keen on delivering value for Nigeria.
While expressing the company’s readiness to build a legacy of national prosperity through innovation and shared purpose, Ojulari said NNPCL will sustain its collaboration with the Dangote Group, especially where there is commercial advantage for Nigeria.
“Both executives also committed to being the relationship managers for their respective organisations through sustained productive collaboration and healthy competition, thereby envisioning limitless opportunities for both organisations,” Soneye further stated.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
