Dangote Refinery Blames Crude Oil Supply Issues on NUPRC and IOCs

Aliko Dangote, the President and Chief Executive of Dangote Group, has revealed that the primary challenge facing the Dangote Refinery is the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) reluctance to enforce domestic supply obligations by International Oil Companies (IOCs) in Nigeria.

In a statement on Thursday, Dangote disclosed that the refinery’s crude oil supply problem lies with NUPRC and IOCs, contradicting a report that the Nigerian National Petroleum Corporation (NNPC) supplies the refinery with about 60 percent of the 50 million barrels lifted.

According to Dangote, when the refinery approached IOCs for crude supply, they either redirected the company to a third party or responded that their cargoes were committed. He emphasized that the refinery’s concern has always been NUPRC’s reluctance to enforce domestic crude supply obligations and ensure that they receive their full crude requirement from NNPC and IOCs.

The refinery requires 15 cargoes for September, but NNPC has only allocated six. Despite appealing to NUPRC, the refinery has been unable to secure the remaining cargoes. When approached by IOCs, they redirected the refinery to their international trading arms or responded that their cargoes were committed.

The NUPRC had previously directed oil refiners in the country to provide monthly price quotes on crude supply to address the challenges facing Dangote Refinery. Additionally, President Bola Tinubu directed NNPCL to sell crude in Naira to the refinery and other local refineries. However, as of the time of filing this report, Tinubu’s directive remains unimplemented.

The ongoing crude supply challenge has significant implications for the refinery’s operations and the broader Nigerian economy. The situation highlights the need for effective regulation and cooperation between stakeholders to ensure a stable and efficient crude oil supply chain.