NNPC issues rare petrol import tender to stave off shortages

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In a sign that the scarcity of petrol in Nigeria could be more widespread than first thought, state-owned NNPC has issued a spot tender seeking 1,480,000 mt of petrol from January to April, on top of the existing term volumes it imports, Platts reports.

Nigeria imports around 1 million-1.25 million mt/month of petrol to meet national demand estimated at 35 million-40 million liters/d. These import requirements are expected to increase further due to the current situation.

It is rare for NNPC to issue a tender for petrol imports and sources said the move highlights the significance of the shortages. The latest tender shows the NNPC is concerned that the supply crisis might get worse, and in a bid to cover its requirements it is tendering for more spot petrol.

NNPC accounts for more than 90% of the petrol imported into the country through the direct sale of crude and direct purchase of refined products (DSDP) model. The tender is reportedly restricted to companies which were selected in 2017 to participate in the DSDP program.