NNPCL delivered less than 25% of expected crude under naira-for-crude programme — Dangote

NNPCL delivered less than 25% of expected crude under naira-for-crude programme — Dangote

Dangote Petroleum Refinery has disputed claims by the Nigerian National Petroleum Company Limited (NNPCL) that it fully met its obligations under the Federal Government’s naira-for-crude programme, revealing that the national oil company supplied only three of the 14 crude oil cargoes expected under the arrangement.

The refinery said the deliveries represented less than 25 per cent of the crude volumes it anticipated receiving through the initiative, forcing it to source the majority of its feedstock from international suppliers to keep operations running.

The clarification follows NNPCL’s recent assertion that it supplied all crude cargoes made available under the naira-for-crude programme and did not withhold feedstock from the 650,000 barrels-per-day Dangote Refinery.

Responding to the claim, Dangote Refinery maintained that the crude volumes supplied under the arrangement fell significantly short of its operational requirements.

According to refinery officials, the facility received only about four million barrels of crude per month, compared with an expected allocation of roughly 13 million barrels monthly under the programme. The shortfall, the company said, made it impossible to rely solely on domestic crude supplies.

To bridge the gap, Dangote Refinery said it turned to international crude suppliers, purchasing additional feedstock from global trading companies and producers in Africa, the Middle East and other oil-producing regions.

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The refinery noted that the naira-for-crude initiative remains an important policy designed to support local refining, reduce pressure on Nigeria’s foreign exchange reserves and improve the availability of petroleum products in the domestic market. However, it stressed that the programme can only achieve its objectives if adequate volumes of crude are consistently supplied to local refineries.

The disagreement comes shortly after Dangote Refinery announced plans to begin selling refined petroleum products in United States dollars, citing rising production costs caused by inadequate domestic crude supply and increased dependence on imported crude purchased at international market prices.

The company explained that buying crude in dollars while selling refined products in naira had become increasingly unsustainable, particularly amid exchange rate volatility and higher global crude prices.

Industry analysts have warned that continued reliance on imported crude could increase production costs, place additional pressure on Nigeria’s foreign exchange market and ultimately affect domestic fuel prices.

At the same time, analysts noted that higher international oil prices could improve Nigeria’s export earnings, partially offsetting some of the economic pressures associated with increased crude import costs.

For its part, NNPCL maintained that it fulfilled its obligations by delivering every crude cargo allocated under the programme, arguing that crude supply depends on production levels, availability, contractual commitments and operational schedules.

The differing positions highlight the broader challenge of ensuring sufficient domestic crude supply for local refineries despite Nigeria being Africa’s largest crude oil producer.

Since commencing operations, Dangote Refinery has increasingly relied on a combination of domestic and imported crude to maintain production. The refinery is expected to play a pivotal role in reducing Nigeria’s dependence on imported petroleum products, improving energy security and expanding exports of refined fuels across Africa.

Industry stakeholders say strengthening the implementation of the naira-for-crude policy and guaranteeing consistent crude supply to domestic refiners will be critical to achieving the Federal Government’s goal of making Nigeria self-sufficient in refined petroleum products.

NNPCL delivered less than 25% of expected crude under naira-for-crude programme — Dangote