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132 Firms Bid For NNPC’s Crude Sales Contract
The Nigerian National Petroleum Corporation (NNPC), yesterday, opened the 2019 Direct Sale of Crude Oil and Direct Purchase (DSDP) to its local and international business partners, and potential off-takers and suppliers with 132 organisations indicating interest.
The Group Managing Director of NNPC, Dr Maikanti Baru, who set the process in motion, said the essence of the bidding was to ensure reputable qualified companies were engaged.
The 132 companies are bidding for about 14 billion liters of products under the DSDP scheme.
Baru explained that the process was to ensure that the selection of off-takers aligned with transparent and accountable procedures in compliance with the Public Procurement and Nigerian Content Acts.
“The third public bid opening ceremony for the DSDP tenders is fully in line.
“The DSDP scheme was introduced in 2016 with efficient and cost effective systems and processes to plug the value eroding loopholes of the January, 2015 OPC contracts.
“Since the inception of the DSDP scheme in 2016 until March, 2019, about 29.5million metric tons (39.6 billion liters) of petroleum products have been supplied under the scheme representing over 90 per cent of the national requirement.
“Through a transparent competitive bidding and evaluation process, the scheme has enlisted a robust supplier mix comprising of the big international players and strong Nigerian downstream companies for supply flexibility and local capacity development,” Baru said.
According to him, the scheme has over the years, ensured significant reduction in product demurrage cost in the range of 84 per cent and cost savings of about $2.2 billion.
He assured the bidders that all the bids would be given fair consideration.
The Group General Manager (GGM), Crude Oil Marketing Division, NNPC, Mele Kyari, said the bid process was open to all to optimise local participation.
Meanwhile, the Nigerian National Petroleum Corporation, NNPC, yesterday, disclosed that it has saved $2.2 billion since the introduction of the Direct Sales, Direct Purchase scheme, DSDP.
The DSDP scheme involves the NNPC allocating certain volume of crude oil to the successful companies, while the companies are required to bring in equivalent value of different petroleum products to the country.
Speaking at the DSDP bid opening ceremony in Abuja, Group Managing Director of the NNPC, Dr. Maikanti Baru, also disclosed that the agreement the NNPC was looking to enter into with the successful companies would involve about 14 billion litres of petroleum products per annum.
He stated that over the years, through a transparent competitive bidding and evaluation process, the DSDP scheme had enlisted a robust supplier mix, comprising big international players and strong Nigerian downstream companies for supply flexibility and local capacity development.
Baru said, “The scheme prides itself with a competitive pricing framework, that is lower than the Petroleum Products Pricing Regulatory Agency, PPPRA, benchmark, which over the years has ensured significant reduction in product demurrage cost in the range of 84 per cent and cost savings of about $2.2 billion.”
He added that 132 bids were received for the 2019/2020 programme, noting that the DSDP marks a milestone that aimed to maximise Nigeria’s crude oil for the benefit of all Nigerians. He stated that the programme was designed to plug loopholes recorded in previous Offshore Processing Arrangement deals, explaining that reputable and qualified companies would be engaged for the scheme.
According to Baru, credible, tested and compliant offtakers would be engaged for the scheme, as well as strong Nigerian downstream companies to ensure steady supply of petroleum products and also develop their capacity.
Also speaking, Group General Manager, Crude Oil Marketing Division of the NNPC, Mallam Mele Kyari, disclosed that the key objective was to eliminate corruption, adding that corruption cannot be eliminated without putting in place measured to eliminate opacity. He said, “We are trying to ensure that out processes are open to all the DSDP is an intervention 6to ensure unfettered supply of petroleum products.”
He said the scheme would ensure optimal value for Nigeria’s crude oil, ensure cost saving and also guarantee that it’s processes can be validated.
He noted that each of the partners must be able to demonstrate financial capacity to a minimum of $72 million as well as cognate experience in crude oil marketing and petroleum products import. He added that the NNPC, “would do its best efforts to conduct its own internal estimates, setting up minimum price levels.
This is not a highest or lowest bidder tender, because we know some prices are not realistic. “We want to ensure best value, secure products supply, encourage local participation and grow capacity of indigenous companies. These are the aims of the programme. The companies are expected to pay taxes to government, while we would get best and fair prices.”
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Nigeria Exceeds OPEC Quota As Production Hits 11-month High
Nigeria’s crude oil production has surged to an 11-month high in May, 2026, with the country exceeding its Organisation of the Petroleum Exporting Countries (OPEC) production quota.
The average crude oil production recorded during the month of May represents 102 per cent of Nigeria’s 1.5mbpd of production quota allocated by the OPEC.
The production report released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), yesterday, disclosed that Nigeria’s oil production averages 1,530,354 barrels of crude oil and 170,446 barrels of condensates per day (bpd).
According to the report, this brings the total combined production to 1, 700, 800 barrels per day and consolidating Nigeria’s position as Africa’s largest oil producer.
The report said the production performance during the review period remained robust, with combined crude oil and condensate output ranging between a low of 1.51 million bpd and a peak of 1.86 million bpd.
It said the May 2026 production figures represented the highest recorded by Nigeria since July 2025, when output surged to 1,712,282.
“In strict crude oil terms (excluding condensates), the 1.53 million barrels recorded in May 2026 represents the highest Nigeria has witnessed since January 2025 when crude oil production hit 1.538mbpd.
“The latest crude oil production statistics thus represents a 15-month high on a month on month basis, production rose by 2.77 per cent in May 2026 as against 1.48mbpd in April,” it said.
The report said the broader production trend over the last five months had also remained positive.
It said combined crude oil and condensate output increased from 1.48 million bpd in February to 1.54 million bpd in March, 1.66 million bpd in April, and then 1.7 million bpd in May, underscoring sustained growth in Nigeria’s hydrocarbon production levels.
According to the report, among production streams, Bonny Terminal led the pack with a total blend of 293,870 bpd, closely followed by Forcados Terminal at 289,900 bpd, Qua Iboe ranked third with 173,360 bpd, while Escravos Oil Terminal contributed 135,470 bpd.
It said the Odudu (Amenam Blend) completed the top five production streams, accounting for 63,250 bpd during the month under review.
The NUPRC attributes the rise in production to a sustained positive momentum as operations remained stable throughout the reporting period with no significant pipeline or facility outages recorded.
Additionally, all previously scheduled turnaround maintenance activities had been successfully completed, contributing to improved operational reliability and production efficiency.
News
Reps Pass State Police Bill
The House of Representatives, yesterday passed a landmark constitutional amendment bill to establish state police nationwide, marking a significant milestone in Nigeria’s decades-long debate over decentralising policing and strengthening internal security.
The bill, titled “A Bill for an Act to Alter the Constitution of the Federal Republic of Nigeria, 1999 to Provide for the Establishment of State Police and for Related Matters (Sixth Alteration) Bill, 2026,” was approved during consideration at the Committee of the Whole, presided over by Speaker of the House, Rt. Hon. Tajudeen Abbas.
Voting commenced after the Deputy Speaker and Chairman of the House Committee on Constitution Review, Hon. Benjamin Kalu, presented the report on the proposal and canvassed support from lawmakers, stressing the need for a more decentralised policing framework to effectively address the country’s growing security challenges.
The exercise was conducted manually, with members raising their hands to indicate their positions. At the end of the voting, 289 lawmakers voted in support of the bill, one member abstained, while none voted against it, reflecting overwhelming bipartisan backing for the far-reaching reform.
The proposed amendment seeks to fundamentally restructure Nigeria’s policing architecture by creating both Federal and State Police formations.
One of the bill’s key provisions amends Section 214 of the 1999 Constitution to formally establish the Federal Police and the State Police. Under the proposal, the National Assembly would be empowered to prescribe the structure, organisation, administration and powers of the Federal Police, while also providing the legal framework and minimum standards for the establishment and operation of state police services.
The bill stipulates that no state police formation shall commence operations unless it is established by a law enacted by the relevant State House of Assembly and certified as complying with national minimum standards prescribed by an Act of the National Assembly.
It further provides that until a state police force becomes operational, the Federal Police shall continue to exercise policing powers and responsibilities within such states.
In a bid to preserve the autonomy of state police formations and prevent undue federal interference, the bill limits federal intervention in states’ internal security affairs. Under the proposal, the Federal Police may intervene only where there is a complete breakdown of law and order, upon the request of a governor or where a state police force becomes unable to function due to administrative, financial or other operational challenges.
The amendment also proposes significant changes to the police’s appointment and command structure.
Under the amended Section 215 of the Constitution, the Inspector-General of Police would be appointed by the President on the advice of the Nigeria Police Council from among serving members of the Federal Police, subject to confirmation by the National Assembly.
Similarly, a State Commissioner of Police would be appointed by a governor on the advice of the Nigeria Police Council from among serving officers of the State Police, subject to confirmation by the respective State House of Assembly.
The bill empowers governors to issue lawful directives to State Commissioners of Police on matters relating to public safety and the maintenance of law and order. However, where a commissioner considers such directives unlawful or inconsistent with accepted policing standards, the matter may be referred to the Nigeria Police Council, whose decision shall be final.
The proposal also amends Section 84 of the Constitution by replacing references to the “National Police Council and the Federal Police Service Commission” with the “Nigeria Police Council and the Police Service Commission.”
The passage of the bill by the House represents one of the most far-reaching security reforms contemplated since the return to democratic rule in 1999 and is expected to rekindle nationwide debate on issues relating to funding, accountability, operational control and safeguards against abuse.
With the House’s approval, the constitutional amendment bill will now proceed to the Senate for concurrence. Thereafter, it must secure the endorsement of at least two-thirds of the State Houses of Assembly and receive presidential assent before becoming part of the Constitution of the Federal Republic of Nigeria.
If eventually enacted, the legislation would usher in a new era of multi-layered policing in Nigeria and could redefine the country’s approach to tackling banditry, terrorism, kidnapping and other forms of violent crimes through a more localised security architecture.
News
FG Declares Today Public Holiday To Mark Democracy Day
The Federal Government has declared today, public holiday to commemorate Nigeria’s 27 years of unbroken democratic rule.
This is contained in a statement in Abuja, by the Permanent Secretary, Ministry of Interior, Magdalene Ajani.
Ajani said that the Minister of Interior, Dr Olubunmi Tunji-Ojo, made the declaration on behalf of the federal government.
Tunji-Ojo reaffirmed the federal government’s commitment to the preservation of democratic ideals, rule of law, transparency, accountability and inclusive governance.
He assured that the ministry in collaboration with relevant security agencies woulsd continue to take appropriate measures in maintaining and strengthening Nigeria’s internal security.
The minister noted that a secured and stable environment was essential to democracy and national development.
He urged Nigerians to see the holiday as an opportunity for civic reflection.
“As we mark this historic day, every Nigerian is encouraged to remain law-abiding, uphold the institutions that sustain our democracy, and remember that the strength of any democracy lies ultimately in the character of its citizens,” he said.
He also said that June 12 every year remained a significant day in Nigeria’s history in honour of the courage, resilience and sacrifices of Nigerians whose efforts made democratic governance possible.
“Their legacies continue to inform the values and responsibilities of the Nigerian state,”Tunji-Ojo added.
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