Dangote Blames NUPRC and IOCs for Crude Supply Issues at Dangote Refinery.
Aliko Dangote, President and Chief Executive of Dangote Group, has publicly criticized the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and International Oil Companies (IOCs) for causing significant delays and difficulties in the crude oil supply to the Dangote Refinery. In a statement released on Thursday, Dangote outlined the key issues impacting the refinery’s operations.
Dangote clarified that the primary obstacle is the NUPRC’s reluctance to enforce the domestic supply obligations placed on IOCs. According to him, despite numerous appeals, the NUPRC has not taken sufficient action to ensure that Dangote Refinery receives the full quantity of crude oil required from both the Nigerian National Petroleum Company (NNPC) and the IOCs operating in Nigeria.
He highlighted that for September, Dangote Refinery required 15 cargoes of crude oil. However, NNPC only allocated six cargoes, leaving Dangote’s company short by nine cargoes. Efforts to secure these additional cargoes from IOCs have been unfruitful, with IOCs either redirecting Dangote to their international trading arms or claiming their cargoes were already committed.
In response to these challenges, the NUPRC had issued a directive in July 2024, asking oil refiners to provide monthly price quotes on crude supply to help resolve the issues facing Dangote Refinery. Additionally, President Bola Tinubu had instructed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil in Naira to Dangote and other local refineries, aiming to address the supply shortfall.
As of the time of this report, however, Tinubu’s directive has yet to be fully implemented, leaving the refinery still grappling with supply issues.