Supply Crude to Dangote First, Not Foreign Partners, Group Warns NNPC
- A Nigerian citizens’ group has urged NNPCL to prioritize crude oil supply to local refineries, including the Dangote Refinery, over foreign partners
- The group criticized NNPCL’s claims about the Warri and Port Harcourt refineries’ output, citing inefficiency and lack of evidence of fuel production
- Calls for President Tinubu’s intervention underscore concerns that reduced allocations to Dangote Refinery could undermine local energy reforms
A citizens’ group has called on the Nigerian National Petroleum Company Limited (NNPCL) to prioritize crude oil supply to local refineries, including the privately owned Dangote Refinery, amid growing concerns over a reported reduction in allocations.
Speaking at a press conference in Abuja, the group accused the NNPCL of attempting to marginalize private sector players like the Dangote Refinery, which is poised to transform Nigeria’s energy landscape.
The group argues that it was the coming in of Dangote that revitalised the oil and gas sector. Image: X/NNPCSource: Twitter
The refinery, Africa’s largest single-train facility, is designed to process 650,000 barrels of crude oil per day, significantly reducing the country’s reliance on fuel imports.
The group’s national coordinator, Obinna Francis, argued that cutting the refinery’s crude allocation—reportedly from 300,000 barrels per day—would hinder efforts to make petroleum products more affordable for Nigerians.
This comes at a time when the removal of fuel subsidies has caused petrol prices to soar, exacerbating economic challenges across the country.
Group tells FG to ease operations for private institutions
Instead of supporting local investors who provide tangible solutions, the NNPCL is doubling down on unproductive ventures like the Warri and Port Harcourt refineries, Francis said. And these government-owned refineries have consistently failed to deliver despite years of investments and maintenance spending.
The Warri and Port Harcourt refineries have been the subject of controversy for years. Although the NNPCL claims they are now operational at 60-70% capacity, critics argue there is no evidence of fuel production.
The refineries, plagued by inefficiency and mismanagement, have historically drained public funds. Reports indicate that Nigeria spent $760 million on their maintenance in 2011 alone, with little to show for it.
He said:
“There is overwhelming evidence that the private sector has served the Nigerian public and stakeholders better than government-owned and operated utilities and parastatals”
The Dangote Refinery stands in stark contrast. Built with private funds, it is expected to bolster domestic fuel supply and stabilize prices. However, the reported reduction in crude allocations has sparked fears of a deliberate attempt to frustrate private sector contributions.
Group recounts past ordeals in public sector
Francis also drew parallels to Nigeria’s telecommunications and power sectors, which saw significant improvements following liberalization and private sector participation.
He said:
“The federal government sold power-generating companies to the private sector some years ago. In the telecommunications sector, the government liberalised the industry in 2001 by selling GSM licences but retained ownership of the key operator.
“In each of the above examples, continued operation by the public sector led to billions of naira being lost on poorly managed entities. These entities deprived Nigerians of important services, fostered corruption and deprived important budget items, like education and health, of vital funds; in each case, privatisation or liberalisation – allowing competition from private business – solved the problem, and ensured the greater common good
The group has called on President Bola Tinubu to intervene, urging his administration to champion policies that empower local businesses rather than stifle them.
NNPC is in financial mess
Earlier, TheTalk.NG reported that an audit report from the Auditor-General for the federation had revealed that the Nigerian National Petroleum Company (NNPC) spent N514 billion on unauthorised transactions.
The audit report of non-compliance/internal control weaknesses in the MDAs report discovered four financial infractions amounting to N514 billion during the 2021 financial year.
Source: TheTalk.NG
