Aliko Dangote, President and CEO of the Dangote Group, has attributed the crude oil supply issues facing the Dangote Refinery to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and International Oil Companies (IOCs) operating in Nigeria.
According to the Daily Post, in a statement issued on Thursday, Dangote responded to allegations that the NNPC supplies approximately 60% of the 50 million barrels of crude oil to the Dangote Refinery.
Dangote highlighted that the main issue for the refinery is NUPRC’s hesitation to enforce domestic supply obligations for IOCs in Nigeria.
He stated that when the Dangote Refinery approached IOCs for crude oil, they either referred the refinery to third parties or said their shipments were already allocated.
Dangote stated, “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.”
In July 2024, NUPRC instructed oil refiners in Nigeria to provide monthly price quotes on crude supply to help address the issues facing the Dangote Refinery.
In response to these challenges, President Bola Tinubu ordered the NNPCL to sell crude oil in Naira to the Dangote Refinery and other local refineries. However, this directive has yet to be implemented.
