The Dangote Group has openly criticized the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its failure to deliver on the promised allocation of 29 million barrels of crude oil.
Despite NUPRC's claims of facilitating this supply between January and June 2024, Dangote Refinery asserts that it has not received these cargoes.
Anthony Chiejina, Group Chief, Branding and Communications Officer of Dangote Group, stated, "We are in receipt of NUPRC’s statement that they have facilitated the allocation of 29 million barrels of crude oil to the Dangote Petroleum Refinery and Petrochemicals. We would like to thank them for this allocation but at the same time let them know that we are yet to receive these cargoes."
The NUPRC, however, maintains that it has fulfilled its obligations under the Petroleum Industry Act (PIA) 2021, which mandates local supply obligations for domestic refineries.
The commission highlighted that it had facilitated the supply of over 32 million barrels of crude oil to various domestic refineries, with Dangote Refinery alone receiving 29,047,098 barrels.
In response to Dangote's accusations, the NUPRC stated, "Consequently, the commission rejects insinuations that it has poorly enforced the domestic crude supply obligation."
Despite these assurances, Dangote Refinery continues to face challenges in securing sufficient crude oil supplies. The refinery, which requires 325,000 barrels per day, has struggled to meet its operational needs due to what it describes as lax enforcement of the Domestic Crude Supply Obligation (DCSO).
This situation has forced the refinery to purchase Nigerian crude from international traders at a premium, significantly raising operational costs.
The broader context of this dispute is the implementation of the PIA, signed into law in August 2021, aimed at overhauling Nigeria's oil and gas industry.
A key provision of the PIA is the requirement for Nigerian refineries to purchase crude directly from domestic producers, bypassing international traders. However, Dangote Group's frustrations highlight ongoing issues with the enforcement of this provision.
In a statement, Dangote Refinery urged the NUPRC to fully enforce the domestic crude supply obligation as mandated by the PIA.
"All we are asking for is for refineries in Nigeria to buy crude directly from the companies that produce it in Nigeria rather than from international middlemen," Chiejina emphasized.
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