The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has expressed deep concerns over the failure of Dangote Refinery and other domestic refineries to secure a steady supply of crude oil, despite the country’s vast reserves.
Gbenga Komolafe, the Chief Executive of NUPRC, made this lamentation during a meeting with domestic refinery operators in Abuja on Wednesday. He emphasized that it would be a matter of national shame if Nigeria couldn’t meet its domestic crude obligations and enhance its refining capacity. The highly anticipated Dangote Refinery, with a capacity to process 650,000 barrels per day, is ready to commence operations but lacks the necessary feedstock.
“As a nation, it will be a shame if we cannot meet the refinery’s feedstock,” Komolafe stated. He called upon relevant authorities to ensure that Dangote Refinery and other domestic refineries receive uninterrupted crude oil supply.
Notably, the NUPRC boss underscored the positive impact that domestic crude refining would have on the prices of petroleum products at the pump. He reminded everyone that despite Nigeria’s significant crude oil reserve of approximately 38 billion barrels, the country remains a net exporter of crude oil and a net importer of refined products.
“Our inability to meet our domestic refining obligation has had a detrimental effect on our economy,” Komolafe explained. “We incurred considerable under-recovery costs during the fuel subsidy regime. By meeting our domestic refining obligations, we can alleviate some of the associated costs in pricing the refined products.”
Therefore, it is imperative for the entire industry to come together and find ways to make Nigeria a net exporter of refined products. This was the primary issue discussed during the meeting.
In a related development, the long-awaited Dangote Refinery, which is part of the Dangote Group, was reportedly set to receive its first crude oil cargo in two weeks, as announced by the Executive Director, Devakumar Edwin, on 20 September. However, several months have passed, and the refinery is yet to commence operations, adding to the growing concerns.
The NUPRC’s concerns reflect the widespread frustration among industry stakeholders and the Nigerian population as a whole. The nation’s oil-rich status should guarantee self-sufficiency in refined petroleum products. It is time for all relevant authorities to prioritize and address this pressing issue, for the benefit of the economy and the well-being of the Nigerian people.
