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DANGOTE ACCUSES IOCs, NIGERIAN GOVT AGENCY OF FRUSTRATING REFINERY
The President and Chief Executive of Dangote Group, Aliko Dangote, has revealed that the Dangote Refinery’s crude oil supply problem lies with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the International Oil Companies (IOCs) in Nigeria.
Africa’s richest man disclosed this in a statement on Thursday.
He was responding to a report that the NNPC supplies Dangote Refinery with about 60 percent of the 50 million barrels lifted.
In the statement, Dangote noted that the primary challenge confronting the refinery is NUPRC’s reluctance to enforce domestic supply obligations by IOCs in Nigeria.
He explained that when Dangote Refinery approached the IOCs for crude supply, they either redirected the company to a third party or responded that their cargoes were committed.
“Our concern has always been NUPRC’s reluctance to enforce the domestic crude supply obligation and ensure that we receive our full crude requirement from NNPC and the IOCs.
“For September, our requirement is 15 cargoes, of which NNPC allocated six. Despite appealing to NUPRC, we’ve been unable to secure the remaining cargoes.
“When we approached IOCs producing in Nigeria, they redirected us to their international trading arms or responded that their cargoes were committed,” he said.
Recall that in July 2024, the NUPRC directed oil refiners in the country to provide monthly price quotes on crude supply to address the challenges facing Dangote Refinery.
In a move to address the crude supply challenge faced by Dangote Refinery, President Bola Tinubu directed NNPCL to sell crude in Naira to the company and other local refineries.
However, as of the time of filing this report, Tinubu’s directive is yet to be implemented.
