Business
Dangote Refinery Faces Supply Issues as NNPCL Fails to Meet Crude Oil Targets
Dangote Refinery has expressed concerns that the Nigerian government has not fulfilled its obligations to supply the required oil for its domestic refinery under the Naira-for-crude deal, an agreement aimed at boosting local refining capacity.
In an interview with Reuters, Devakumar Edwin, the Vice President of Dangote Industries Limited, stated that the Nigerian National Petroleum Company Limited (NNPCL) has failed to meet the set targets for crude oil delivery.
According to Edwin, the amount of crude oil received from NNPCL is significantly lower than what is necessary to scale up the refinery’s production of refined products.
Edwin pointed out that while the Naira-for-crude initiative, which was launched in October 2024, was supposed to provide a minimum of 385,000 barrels per day (bpd) of crude oil to Dangote Refinery, the actual supply has been far below that target.
He revealed that the refinery actually needs around 650,000 barrels per day to operate at full capacity, but NNPCL’s delivery has fallen short, describing the crude received as “peanuts” in comparison to the refinery’s needs.
This development comes as part of the Nigerian government’s push to revitalize its domestic refining sector and reduce its dependency on imported refined products.
The Naira-for-crude deal was expected to be a key component of this strategy, where the government would provide crude oil to Dangote Refinery in exchange for the refinery processing and supplying refined products to the local market.
However, the continued shortfall in crude oil supply raises questions about the sustainability of this arrangement and the government’s ability to meet its commitments.
Despite these challenges, reports have surfaced that Dangote Refinery has turned to alternative sources, including crude oil imports from the United States, to boost its production capacity.
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It has been noted that the National Youth Service Corps (NYSC) and British American Tobacco Nigeria Foundation (BATNF) plan to renew their partnership in agribusiness.
The new project is to involve youth in the agriculture business, widen their horizons, and educate them about the agritech sector.
The general manager shared that “The foundation is not only providing grants but also building a system of mentorship, structure, and support that enables corps members to see agribusiness as a serious enterprise pathway.” The plan is to use the NYSC platform to engage youths.
Idi Mukhtar Maiha, Minister of Livestock Development, has revealed the government’s intention of placing women in the livestock transformation agenda that they have in store for Nigeria.
During a recent event, he praised women, describing them as the backbone of the country, and shared that the country will keep on needing their support, hence the inclusion of the agenda team.
He also praised the First Lady for the impact she has made in the country so far and her advocacy for women’s empowerment.
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