The Nigerian National Petroleum Company Limited (NNPC) has insisted that it supplied all available crude oil cargoes allocated to the Dangote Petroleum Refinery under the Federal Government’s naira-for-crude initiative.
The clarification comes amid concerns over the volume of crude oil being supplied to the refinery under the arrangement.
A senior management official of the Dangote Group reportedly disclosed that the refinery was receiving approximately four million barrels of crude oil monthly under the initiative, significantly below the roughly 13 million barrels envisaged following President Bola Tinubu’s directive in 2024.
The reported shortfall has raised questions about the ability of the refinery to secure sufficient crude feedstock for its operations.
The Dangote refinery had previously linked its decision to switch from naira-denominated fuel sales to dollar transactions partly to challenges associated with crude oil supply.
The refinery also indicated that increased exports of refined petroleum products would help it generate foreign exchange.
Responding to the concerns, NNPC, through its spokesman Andy Odeh, maintained that the national oil company had fully discharged its responsibilities under the naira-for-crude policy.
The company stated that it had supplied all available crude oil cargoes allocated under the arrangement.
“As a 7.25 per cent equity shareholder in Dangote Petroleum Refinery and Petrochemicals, NNPC Limited has a direct and genuine interest in seeing the refinery operate at full capacity,” the company said.
The issue of crude supply has become increasingly important as Nigeria seeks to maximise the benefits of its domestic refining capacity.
The Dangote refinery is designed to process large volumes of crude oil and produce refined petroleum products for the domestic and international markets.
A reliable supply of crude is therefore essential to achieving the refinery’s full operational potential.
The naira-for-crude initiative was introduced as part of efforts to support domestic refining and reduce pressure on Nigeria’s foreign exchange market.
Under the arrangement, crude oil is supplied to domestic refineries in exchange for naira, while refined petroleum products are made available to the Nigerian market.
However, the reported difference between the anticipated and actual crude supply volumes has generated renewed debate over the effectiveness of the initiative.
NNPC’s position is that it has met its obligations by supplying all available cargoes allocated under the programme.
The situation highlights the complexities surrounding crude oil production, allocation and domestic refining in Nigeria.
As the country continues to increase its refining capacity, stakeholders will be watching closely to see how crude supply arrangements evolve.
Ensuring adequate feedstock for domestic refineries could be critical to reducing Nigeria’s dependence on imported petroleum products and strengthening energy security.
