Dangote Petroleum Refinery has refuted claims by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) that it received 29 million barrels of crude oil as part of the domestic crude supply obligation.
In a statement released on Friday by Anthony Chiejina, Group Chief, Branding and Communications Officer of Dangote Group, the company clarified that it has not received the allocated crude.
The controversy arose after NUPRC asserted that between January and June 2024, nine refineries in Nigeria benefitted from a supply of 32 million barrels of crude oil, with Dangote Refinery reportedly receiving the majority share of 29 million barrels. However, the refinery has denied these claims.
“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,” the company stated. “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.”
Chiejina further elaborated that aside from a term supply negotiated directly with the Nigerian National Petroleum Company (NNPC) Limited, the refinery has only processed one crude cargo facilitated by NUPRC from a domestic producer. The remaining crude has been sourced from international traders, contrary to NUPRC’s claims.
The dispute highlights ongoing challenges in Nigeria’s oil sector, particularly regarding the enforcement of the domestic crude supply obligation as outlined in the Petroleum Industry Act (PIA). Chiejina criticized the reliance on international middlemen for crude purchases, emphasizing that refineries should buy directly from domestic producers as stipulated by law.
Chiejina also pointed out that the NUPRC has effectively admitted in their statement that they may be “unable to enforce the domestic crude supply obligation” as required by the PIA, citing the “sanctity of contracts” as a reason for their inability to fulfill the obligation.
