Dangote Refinery: No Crude Sales in Naira Yet

Dangote refinery still awaiting naira crude payments... 

Despite President Tinubu's directive, Dangote Refinery and other local refineries have yet to begin buying crude oil in Naira, awaiting guidance from the Nigerian Midstream and Downstream Petroleum Authority (NMDPRA) to initiate the process.

Despite President Bola Ahmed Tinubu's recent directive, Dangote Refinery and other local refineries have not begun buying crude oil in Naira. This was revealed by Eche Idoko, Publicity Secretary of the Crude Oil Refiners Association of Nigeria, in a statement on Tuesday, August 6.

According to Idoko, the Nigerian Midstream and Downstream Petroleum Authority (NMDPRA) is expected to take the lead in initiating the process of crude oil purchase in Naira, as instructed by the President.

“We have not started buying crude from NNPCL. Individual members have written to them (NNPCL) already, and they have several requests from these refineries before them.

“Typically, we would expect our regulator, in this instance, the NMDPRA, to kick start the process by calling for a meeting of all parties to discuss the framework for such supply or have NNPCL respond to the various letters to it by the refineries requesting for crude,” Idoko stated.

In July, President Tinubu directed the Nigerian National Petroleum Company Limited (NNPCL) to supply crude oil to the 650,000 barrels per day Dangote Refinery and other local refineries. This move aimed to guarantee Nigeria's domestic oil production of 450,000 barrels per day, as mandated by the Petroleum Industry Act (PIA).

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The government's directive sought to ensure that Nigeria meets its domestic oil production obligations, promoting self-sufficiency and reducing reliance on imported petroleum products. By supplying crude oil to local refineries, the government hopes to boost domestic production and achieve the targets set by the PIA.

President Tinubu's directive was aimed at addressing the persistent challenges in crude oil supply that have been hindering the operations of Dangote Refinery.