NNPC Not Meeting Our Crude In Naira Target

The Dangote Petroleum Refinery has expressed dissatisfaction over the Nigerian National Petroleum Company Limited’s (NNPC) failure to meet its crude oil supply targets under the naira-for-crude initiative.

Since the programme’s launch in October, NNPC has not delivered the agreed minimum of 385,000 barrels per day, with Dangote requiring 650,000 bpd to operate efficiently.

The refinery described current deliveries as “peanuts” and is now considering sourcing crude from international markets, including a recent purchase of two million barrels from the U.S.

The programme, launched in October, aims to address foreign exchange constraints by allowing local refineries to purchase crude oil in naira. Dangote Refinery, the largest in Africa, was expected to receive a minimum of 385,000 barrels per day (bpd) from NNPC.

However, vice president of Dangote Industries, Edwin Devakumar, has accused NNPC of failing to meet this target.

According to Reuters, Devakumar characterised the volume of crude currently supplied by NNPC Limited as “peanut,” though he did not specify the exact amount.

“We need 650,000 barrels per day, and NNPC Ltd agreed to supply a minimum of 385,000 bpd, but they are not even delivering that,” Devakumar stated.

To address challenges in accessing foreign currency, the government in July said it would sell crude priced in naira to local refineries for an initial six months starting in October.

Findings showed the $20 billion Dangote Refinery had resumed importing crude oil from the United States after a three-month pause.

The refinery reportedly purchased approximately two million barrels of WTI Midland crude from Chevron Corp., according to anonymous sources familiar with the transaction.

The shipment Is scheduled to arrive at the 650,000 bpd petrochemical plant in Lagos next month.