The ongoing turmoil in Nigeria’s oil and gas sector has been further highlighted by Dangote Refinery’s revelation that it has not yet received the 26 million barrels of crude oil allocated by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
In a statement released on Friday, Anthony Chiejina, the spokesperson for Dangote Group, addressed NUPRC’s earlier claim that it had facilitated the delivery of 26 million barrels of crude to the refinery during the first quarter of 2024.
NUPRC also recently announced plans to review its Domestic Crude Supply Obligation Regulations 2023. However, Dangote Refinery clarified that the crude allocation has yet to materialize.
“We appreciate the allocation but must point out that these cargoes have not been delivered,” the statement from Dangote Refinery read.
The refinery further explained that, aside from a term supply agreement directly negotiated with the Nigerian National Petroleum Company (NNPC), NUPRC has only managed to facilitate the purchase of one crude cargo from a domestic producer.
“To date, NUPRC has facilitated only one purchase from a local producer, while the majority of our processed cargoes were acquired from international traders,” the refinery stated.
Dangote Refinery also called on NUPRC to enforce the provisions of the Petroleum Industry Act (PIA), which mandates that refineries in Nigeria should be able to purchase crude directly from domestic producers rather than relying on international intermediaries.
“All we are asking for is the ability for Nigerian refineries to buy crude directly from domestic producers, as stipulated in the PIA,” the company added.
This issue is not new. Aliko Dangote, President and CEO of Dangote Group, previously criticized NUPRC for its reluctance to enforce domestic supply obligations on International Oil Companies and other refiners operating in Nigeria.
The ongoing dispute between Dangote Refinery and NUPRC underscores the challenges facing Nigeria’s oil and gas sector, despite President Bola Tinubu’s recent directive that the Nigerian National Petroleum Company Limited (NNPCL) should sell crude to Dangote Refinery and other local refineries in Naira. This directive has yet to be put into effect.
