Dangote Refinery: Naira-Based Crude Sale Scheme Faltering, NNPC Defaulting

Dangote refinery: Naira-based crude sale scheme faltering | NNPC not delivering supply commitment

The Dangote Petroleum Refinery says the federal government’s initiative to sell crude priced in the local currency is faltering, as the plant is still unable to secure adequate supplies.

Edwin Devakumar, the vice-president of Dangote Industries Limited, spoke to Reuters on Friday.

“We need 650,000 barrels per day, (state oil firm NNPC Ltd) agreed to give a minimum of 385,000 bpd but they are not even delivering that,” Devakumar said.

He described the deliveries from Nigerian National Petroleum Company (NNPC) Limited under the scheme as “peanuts”.

Also speaking, Mathins Obaze, an acting executive director of the Crude Oil Refinery-owners Association of Nigeria (CORAN), said only the Dangote refinery, one of eight refineries in operation in Nigeria, has benefited from the naira-denominated crude sales arrangement.

“Members are still unable to access crude in naira and are currently engaging the government for a resolution,” Obaze said.

On October 5, the federal government said Nigeria officially commenced the sale of crude oil and refined petroleum products in naira — with Dangote refinery focusing on local supply.

A few weeks later, the refinery received four cargoes of crude oil from the NNPC under the naira-for-crude sale agreement.

On November 21, the Lekki-based refinery purchased its first shipment of US oil after a three-month break as the firm sought to increase production.

Source:- Thecableng