Amidst the lingering crisis, Dangote Refinery has revealed that the Nigerian National Petroleum Company Limited (NNPC) is supplying insufficient crude oil for its production demand. Consequently, the refinery is planning to source crude oil from Brazil and America.
The President of Dangote Group, Aliko Dangote, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), alongside NNPC, have been locked in a dispute involving allegations of monopoly, crude oil supply issues, substandard fuel imports, and ownership of blending plants in Malta.
However, in a new revelation, Dangote stated that for the $20 billion refinery to meet its production demand, it must look for other sources of crude oil supply overseas as the NNPC allocation is insufficient.
He explained that the refinery, which has the capacity to refine 650,000 barrels per day, could not depend on the short supply 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 crude to the refinery, necessitating sourcing the remaining 67 percent from elsewhere to meet production capacity.
According to Umar, the refinery has concluded plans to source crude oil from Brazil and America 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 its 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 source crude oil from countries like Brazil and the USA,” he said.
He mentioned that the refinery had commenced supplies to foreign countries since February, disclosing that they receive orders from different countries for supply, especially aviation fuel.
The Chief Commercial Officer also revealed that the refinery needs 15 cargoes of crude oil in September, but NNPC promised only 5, lamenting that the government’s lackadaisical actions towards the refinery seem like sabotage.
According to him, the refinery should be celebrated and embraced by the government rather than being criticized, as it is the biggest employer of labor with over 50,000 workers at the moment.
He emphasized that despite the government’s false narratives, the refinery had started on a positive note as the quality of its refined products is world-class.
He said even the House of Representatives, under the leadership of its speaker, visited the refinery, saw the difference, and was satisfied with the quality of the products.
The official also said, “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.”
A business analyst in Kano, Abdussalam Kani, demanded an apology to Dangote from the federal government and the National Assembly.
He also labeled the NMDPRA boss Ahmed Farouk’s comments against the refinery a treasonable offense that deserves punishment.
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