LONDON – State oil company Nigerian National Petroleum Corporation (NNPC) said that 132 companies had bid for the right to swap the nation’s crude oil for fuels as a tender for the deals closed on Thursday.
The tender for the one-year contracts, dubbed direct sale, direct-purchase (DSDP), was issued in March. NNPC extended the 2018 contracts till June this year.
Nigeria is almost entirely reliant on imported fuel due to years of neglect at its own refineries. It has leaned heavily on the swap arrangements to get fuel, particularly gasoline, as other would-be importers struggle to make money due to price caps.
Since the scheme was introduced in 2016, replacing another programme that paid subsidies to importers, NNPC managing director Maikanti Baru said it had saved the nation $2.2 billion and supplied some 90 percent of its import requirements.
The NNPC is the oil corporation through which the federal government of Nigeria regulates and participates in the country's petroleum industry.
The NNPC business operations are managed through Strategic Business and Corporate Services Units in diverse locations across Nigeria.Reuters