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.
The Federal Government trains 500 women and youths in food production and agriculture. The programme was started to support food security.
The Federal Ministry of Agriculture and Food Security partnered with the National Horticultural Research Institute (NIHORT).
The women and youths were taught tomato, okra and Telfairia production techniques. The government believes this will help boost agriculture, improve food production and strengthen the economy in Ogun State.
According to reports, fuel stations are reducing their prices a bit. This has become a general thing around Nigeria after the spike due to the removal of subsidy.
The prices are dropping to ₦1,275 and ₦1,299, going lower than ₦1,300 compared to what it was before.
MTN has moved closer to acquiring IHS Holding, following shareholder approval of the proposed takeover, marking another major milestone in the transaction.
The approval was secured during the Extraordinary General Meeting (EGM) held on 4 August, allowing the deal to progress to the next stage.
If completed, the acquisition is expected to strengthen MTN’s infrastructure capabilities by giving the company greater control over its telecommunications tower assets. Industry analysts believe the move could improve network efficiency, reduce long-term operating costs, and support MTN’s continued expansion across its markets.
The transaction is still subject to regulatory approvals and other closing conditions before it can be officially completed.
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