Dangote Breaks Silence On How NNPC, NUPRC Have Maltreated Its Refinery Even After Tinubu’s Order

Dangote Refinery has responded to recent media reports regarding the supply of crude oil to its facility, clarifying that it has not accused the Nigerian National Petroleum Corporation (NNPC) of failing to provide crude oil.

In a statement issued by the Group Chief Branding and Communications Officer, Anthony Chiejina, the refinery refuted claims that it received 60% of the 50 million barrels of crude oil it lifted from NNPC. The company emphasized that its concerns are with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the enforcement of the domestic crude supply obligation as outlined in the Petroleum Industry Act (PIA).

Chiejina explained, “For September, our requirement is 15 cargoes. NNPC has allocated six cargoes to us. Despite our appeals to NUPRC, we have been unable to secure the remaining cargoes. We have also sought assistance from International Oil Companies (IOCs) operating in Nigeria but have been redirected to their international trading arms or informed that their cargoes were already committed.”

He further noted the financial burden caused by the shortfall, highlighting that the refinery often has to purchase Nigerian crude from international traders at an additional premium of $3-$4 per barrel, leading to an extra cost of $3-$4 million per cargo.

Dangote Refinery continues to advocate for the full enforcement of domestic crude supply obligations and urges NUPRC to ensure that it receives its full crude requirements from local production sources.

This is coming just a few weeks after President Bola Tinubu ordered the NNPC to supply Dangote refinery crude oil to ensure its optimum operation. It is not clear if the President has been briefed about this new development which has gone against his directive.