Amidst a lingering crisis, Dangote Refinery has revealed that the Nigeria National Petroleum Company Limited (NNPC) is supplying insufficient crude oil for its production demand, prompting plans to source from Brazil and the United States.
The President of Dangote Group, Aliko Dangote, along with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and NNPC, has been embroiled in disputes ranging from monopoly allegations to crude supply, substandard fuel imports, and ownership of blending plants in Malta.
In a new revelation, Dangote stated that for the $20 billion refinery to meet its production demand, it must seek other sources of crude oil supply overseas as the NNPC allocation is insufficient. The refinery, with a capacity of refining 650,000 barrels per day, cannot rely solely on short supplies from Nigeria’s oil company.
Rabiu A. Umar, Group Chief Commercial Officer of Dangote Industries Limited, told newsmen in Kano on Friday that NNPC supplies only 33 percent of the crude needed by the refinery, necessitating the search for the remaining 67 percent from elsewhere to meet production capacity. Umar disclosed that the refinery had concluded plans to source crude oil from Brazil and the United States by August.
“First of all, the refinery is here in Nigeria. We have the crude oil here in Nigeria. We thought we would get the crude oil here and refine it here in our refinery for the benefit of the country and the citizens. Ironically, the country takes the crude oil overseas for refining while we have a refinery, one of the biggest in the world. So, we will not stay idle. We have to look for other sources to meet our production capacity. If we get the crude oil supply here in the country, we have no reason to go overseas. Even now, we are planning to supply crude oil from countries like Brazil and the USA,” he said.
Umar revealed that the refinery had commenced supplies to foreign countries since February, receiving orders from various countries for supply, especially aviation fuel. He also noted that the refinery needs 15 cargos of crude oil in September, but NNPC has promised only five, lamenting that the government’s lackadaisical actions towards the refinery appear to be sabotage.
He emphasized that the refinery, as the biggest employer of labor with over 50,000 workers, should be celebrated and embraced by the government rather than being painted negatively. Umar asserted that, contrary to the government’s false narratives, the refinery had started on a positive note, producing world-standard quality refined products. He mentioned that the House of Representatives, under its speaker’s leadership, visited the refinery, saw the difference, and was satisfied with the quality of the products.
“We are here to defend ourselves, and all the government narratives are not true. We urge the people to take samples of our products to ascertain their quality. We will not be deterred by the government’s criticism. We will continue until we reach the promised land,” Umar stated.
A business analyst in Kano, Abdussalam Kani, demanded an apology to Dangote from the federal government and the National Assembly. He also deemed NMDPRA boss Ahmed Farouk’s comments against the refinery a treasonable offense deserving punishment.
