In an effort to maintain energy security and prevent a monopoly, the Nigerian Federal Government has announced it will continue importing refined petroleum products even as the Dangote Petroleum Refinery begins production. The government emphasized the need to avoid over-reliance on the $20 billion refinery located in the Lekki Free Zone, Lagos, warning that demands for exclusive buying from Dangote could undermine market competition.
Concurrently, the House of Representatives has set up an ad-hoc committee to investigate allegations that international oil companies (IOCs) are not supplying crude oil to the Dangote refinery. Oil marketers have accused these companies of obstructing indigenous refiners.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) assured it is actively working to ensure a steady supply of crude to both the Dangote refinery and other modular refinery operators. The NUPRC aims to resolve the ongoing supply issues and foster a conducive environment for local refineries.
The Nigerian Midstream and Downstream Petroleum Authority (NMDPRA) highlighted that Nigeria’s energy needs cannot be met by a single refinery. Chief Executive Farouk Ahmed stated, “We cannot rely heavily on one refinery to feed the nation. The claim by some media houses that there were steps to scuttle the Dangote refinery is not so. The Dangote refinery is still in the pre-commissioning stage. It has not been licensed yet.”
Ahmed also countered claims from Dangote Group that IOCs were hindering crude supply to the refinery. He noted that despite the refinery’s operational progress in producing diesel and aviation fuel, it remains at a 45% completion rate and unlicensed.
In the House of Representatives, a motion by Minority Leader Kingsley Chinda called for an investigation into the alleged conspiracy by IOCs to disrupt Dangote Refinery operations. Chinda asserted, “The alleged conspiracy against the Dangote refinery relates to efforts by the IOCs to deliberately frustrate the refinery to buy local crude oil by manipulating and jerking up the premium price above the market price.” He stressed the need for government agencies and stakeholders to support the refinery to prevent undue monopoly and ensure fair market practices.
National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, criticized the NNPC and IOCs for inadequate crude supply to local refineries. He called for a local content quota to prioritize domestic refinery needs.
