By Ojo Jeremiah Oladipupo (Siwes student, Efon Alaaye Poly)
The Nigerian National Petroleum Company Limited (NNPCL) has announced its commitment to supply the Dangote Refinery with six million barrels of crude oil in December 2023, in an effort to boost domestic refining and energy security.
This move is in accordance with Section 109 of the Petroleum Industry Act (2021), which mandates domestic crude oil supply to refineries, including the Dangote Refinery, as well as NNPCL refineries in Port-Harcourt, Warri, Kaduna, and modular refineries.
The NNPCL has already acquired an equity stake in the Dangote Refinery and is set to begin crude oil deliveries to the facility.
The delay in the supply of crude oil to domestic refineries, including the Dangote Refinery, has hindered the production of refined petroleum products at these facilities, resulting in Nigeria’s continued reliance on fuel imports.
Despite the Dangote Refinery’s potential to end petrol importation, its production has been delayed until the NNPCL commences crude oil supply in December.
Multiple other modular refineries are also ready to produce refined petroleum products but are facing similar challenges due to the unavailability of crude oil.
Therefore, the Dangote Refinery in Lekki, Lagos, is still awaiting the necessary crude oil supply to initiate the production of refined products.
