DSDP Now Accounts For 90% Of Nigeria’s Petroleum Products Supply
…As 132 firms bid for crude, products lifting
Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Dr Maikanti Baru, has disclosed that the Direct-Sale-Direct-Purchase (DSDP) scheme now accounts for 90 percent of the country’s products requirements.
This then confirms that the countries four refineries contributes only 10percent of products consumed in the country.
Baru said 29.5million metric tons or 39.6billion litres of petroleum products had been supplied under the scheme since inception in 2016.
According to Baru, $2.2 billion have been saved through the DSDP scheme of petroleum products supply. He stated this at the public opening of bids for the 2019 term-contract for lifting crude oil and petroleum products under the DSDP scheme which held at the NNPC Towers, Abuja.
Highlighting other benefits of the scheme, the GMD said its competitive pricing framework which is lower than the Petroleum Products Pricing Regulatory Agency’s (PPPRA) benchmark, led to about 84percent reduction in products demurrage cost.
He said the objective of the DSDP scheme was to engage reputable and qualified companies and ensure that selection of off-takers was carried out in a transparent and accountable manner in compliance with the Public Procurement and Nigerian Content Acts, adding that the ultimate aim was to ensure value optimization to the federation.
The bid round was witnessed by officials of Nigeria Extractive Industries Transparency Initiative (NEITI), Bureau of Public Procurement and other Non-Governmental Oganisations (NGOs)