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.
It has been reported that Coca-Cola Company has agreed to sell off Chivita and Hollandia to UAC of Nigeria.
This information was revealed after UAC of Nigeria released a statement regarding their deal with Coca-Cola. The Managing Director stated that they aim to keep Chi’s legacy and described the deal as an ‘acquisition that presents significant potential to build on Chi’s legacy of excellence and innovation.’
“We see a bright future for Chivita and Hollandia. With the strength of our team, coupled with the dedication of UAC, there will be exciting opportunities for further growth.”
The Independent Petroleum Marketers Association of Nigeria (IPMAN) says it will announce a new, lower petrol price on Monday, following the recent price slash by Dangote Refinery. Dangote Refinery had dropped its ex-depot price for petrol from N840 to N820 per litre on Thursday, prompting IPMAN to consider adjusting its rates in response.
Speaking on the development, IPMAN President, Abubakar Maigandi, said the association is aligning with the move and will meet to finalize a fresh price cut for petrol. “Our members will also reduce their prices,” Maigandi said. “We’ll make an official announcement on the new fuel price after our meeting on Monday.”
As of Friday, filling stations across Abuja were selling petrol at varying prices, between N905 and N945 per litre. While NNPC, NIPCO, AA Rano, and Shema outlets were dispensing around N910, Dangote-linked stations like AP and Ardova offered it slightly lower at N905. Others, including Ranoil, Empire Energy, and Total Emadeb, were selling at the higher end, up to N945.
The cost of refilling a 12.5kg cylinder of cooking gas in Nigeria went up slightly in May 2025, rising by 2.18% compared to the previous month. The average price now stands at N20,709.11, up from N20,268.06 recorded in April. This update was captured in the latest Liquefied Petroleum Gas (LPG) Price Watch report for May, released by the National Bureau of Statistics (NBS).
According to the report, Delta State topped the list with the highest refill price at N23,356.56, followed by Abia at N22,953.01, and Ebonyi at N22,943.30. On the other hand, residents in Yobe, Lagos, and Kebbi states paid the least, with refill prices of N18,500, N18,536, and N18,606.60, respectively.
When compared to the same period last year, gas prices have jumped significantly, rising by 32% from N15,627.40 recorded in May 2024 to the current average. The NBS is yet to release figures for June 2025.
-
Entertainment23 hours agoLoni Anderson, Beloved Star of “WKRP in Cincinnati,” Dies at 79 After Long Illness
-
Entertainment20 hours ago“Only a Virgin Should Request Bride Price” – Reno Omokri
-
Entertainment23 hours agoPriyanka Chopra Arrives Hyderabad With Daughter as Movie Shoot Pauses Due to Strike
-
Entertainment20 hours agoUbi Franklin Reveals the Reason Behind His No Pregnancy Clause for Female Signees
-
Entertainment23 hours agoBLACKPINK’s “Pink Venom” Hits 1 Billion Views on YouTube
-
Sport23 hours agoBruno Fernandes Says Man United Are Lazy and Need Better Players
-
Sport4 hours agoMbappé Says He’s Fired Up to Achieve Big Things with Real Madrid This Season
-
Sport4 hours agoNduka Promises To Make Nigeria Proud Ahead of CHAN Game With Senegal