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Crude supply to domestic refineries hit 67.6m barrels – FG

Published

3 months ago

September 22, 2025

The Federal Government has disclosed that a total of 67,657,559 barrels of crude oil were supplied to local refiners for processing between January and August 2025.

This figure, confirmed by the Nigerian Upstream Petroleum Regulatory Commission, highlights ongoing challenges in bridging the crude allocation gap facing indigenous refineries despite Nigeria’s rising production levels.

Speaking in Abuja on Sunday, the Head of Media and Strategic Communications at the NUPRC, Eniola Akinkuotu, said the crude allocation was made in line with the Petroleum Industry Act 2021 and the Domestic Crude Supply Obligation policy.

According to him, the barrels were delivered to both modular and state-owned refining facilities, including Waltersmith, Aradel Energy, and refineries under the Nigerian National Petroleum Company Limited.

“A total of 67,657,559 barrels were delivered to local refiners between January and August this year. All refiners got that amount within the eight-month period,” Akinkuotu stated.

However, the volume supplied fell short of refiners’ demand by a wide margin. Local processors had requested 123,480,500 barrels for the first half of 2025, meaning they received 55,822,941 barrels—or about 45 per cent—less than required to meet their refining targets.

The DCSO framework, introduced under the PIA, mandates upstream producers to reserve a portion of their crude for domestic processors before exporting, with sanctions for non-compliance. The policy was designed to guarantee feedstock to local refiners and reduce reliance on imported petroleum products.

Earlier this year, the NUPRC projected that refineries such as Port Harcourt, Warri, Dangote, and others would need 770,500 barrels per day, translating to 23.8 million barrels monthly, or 123.4 million barrels for the first half of 2025.

Yet, actual deliveries have not matched these forecasts. Instead, Nigeria’s crude and condensate production climbed to 1.63 million barrels per day in August, with much of it still destined for export.

For months, refinery owners have lamented difficulties in accessing crude locally. They allege that producers prefer selling to international buyers who pay in dollars, leaving domestic refiners struggling under exchange rate pressures.

The Publicity Secretary of the Crude Oil Refiners Association of Nigeria, Eche Idoko, said in July that Nigeria’s quest for self-sufficiency in petroleum refining had been undermined by policy ambiguities and economic contradictions. He faulted the implementation of the DCSO and the Domestic Crude Refining Requirement, saying local refiners remain trapped by the “willing buyer, willing seller” pricing model.

“The willing buyer, willing seller principle was meant to create competitiveness. But in practice, it disadvantages local refiners who cannot match dollar-based offers from international traders,” Idoko said.

According to him, foreign buyers’ access to hard currency makes them more attractive to upstream producers, while local refiners—hampered by currency volatility—are often priced out of the very crude they are entitled to under Nigerian law. “This market liberalisation paradoxically undermines the goal of domestic refining self-sufficiency,” he added.

Despite policy commitments, the reality is that Nigeria still exports most of its crude. Data showed that in the first quarter of 2025 alone, 82 per cent of the country’s production went abroad, even as local refiners battled shortages

Industry analysts warn that the imbalance could stall Nigeria’s refining revolution, where both state-owned and privately-owned plants are expected to reduce the huge import bill for refined petroleum products.

The NUPRC has repeatedly directed oil producers to comply with the DCSO, but enforcement has remained weak. Compliance levels have not met expectations, despite threats of sanctions.

The regulator insists that its allocation of over 67 million barrels in eight months demonstrates a commitment to domestic refining. However, refiners argue that partial allocations cannot support efficient operations or justify the billions invested in local refining capacity.

Industry stakeholders say bridging the crude allocation gap will require more than directives. Stronger enforcement mechanisms, transparent pricing models, and government-backed incentives may be needed to balance producer and refiner interests.

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Business

VIDEO: Stop Buying Rolls-Royce, Use The Money To Build Industries Instead – Dangote Tells Wealthy Nigerians

Published

8 hours ago

December 7, 2025

Oluwagbenga Olaoye

Olarenwaju disclosed that Jonathan betrayed a gentleman’s agreement with Atiku, hence the former Vice President moved against him in 2015.

Aliko Dangote, Chairman of Dangote Group, has urged Nigeria’s elite to channel the money spent on luxury items like Rolls-Royce cars and private jets into building industries that boost economic growth and generate jobs.

Speaking with The PUNCH after a meeting with President Bola Tinubu at Aso Rock Villa on Saturday, Dangote lamented the culture of extravagant consumption, stressing that the nation’s development depends heavily on the responsibility of local investors.

“If you look at the Nigerian policy before, during the military, everybody from the president downwards used Peugeot 504. That was the highest. So, when a president is using 504, you cannot come as a commoner, as a businessman, or whoever you are, to be using Rolls-Royce,” he said.

Dangote criticised the proliferation of private jets at Nigerian airports, arguing that such wealth would be better invested in productive ventures.

“If you have money for a Rolls-Royce, you should go and put up an industry in your locality or anywhere in Nigeria where there is a need.

“It pains me when I go to the local airport, whether here or in Lagos, and even finding a parking space for your plane is impossible because everybody has a private jet. Those private jets could be in industries creating jobs,” he added.

Dangote emphasised that national development requires a strong focus on manufacturing and agriculture, supported by robust banking systems.

He also highlighted the urgent need for job creation, noting Nigeria’s population grows by 8.7 million babies every year, which demands significant investments in infrastructure and power.

“Some people may not know the position of the country as we speak. Population growth is 8.7 million babies every year. So we need to deliver power, infrastructure, and other essentials,” he said.

The billionaire also framed tax compliance as both a civic duty and a partnership with the government.

“When you have a company, the number one shareholder is the government. We need an enabling environment from the government, and as corporate citizens, we must pay our taxes. I cannot cheat my partner. If I pay tax, children can go to school and hospitals can function. The government has huge demands, and we must do our part,” he added.

The businessman dismissed what he described as over-reliance on foreign investors, insisting that no external investor would commit to Nigeria without strong domestic participation.

He said, “We should stop calling for foreign investors. No foreign investor will come here unless domestic investors are active. Good policies, governance, and rule of law attract local investors, and foreign investors follow to partner or establish their own operations.

Dangote reiterated that industrialisation must be led by Nigerians, saying “We must industrialise our country. Nobody will do it but us. Once we industrialise, foreigners will partner with us or invest in Nigeria. We must remove both real and perceived risks to investment.”

The businessman also revealed that the Dangote Refinery would soon produce surplus volumes, with projections indicating that by February, it will supply 15–20 million litres more than Nigeria needs.

This will allow exports to neighbouring countries, reducing fuel scarcity across West Africa.

“We are working to make Nigeria the refining hub of Africa. African countries import products, and we want to ensure that whatever we consume is produced locally,” he said.

Earlier in October, Dangote had also encouraged Nigerians to embrace homegrown products as a way to strengthen the economy and create jobs.

"If you have money to buy Rolls-Royce, you should take that money and go put up an industry in your locality or any part of the country. Everybody has a private jet. Those private jets should be in industries so we can create jobs." — Alike Dangote, chairman of Dangote Group pic.twitter.com/fKx4dpQiKU

— TheCable (@thecableng) December 6, 2025

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Business

NNPC serviced $3bn loan with N991bn crude – Report

Published

2 days ago

December 6, 2025

Newsbreak365_Admin

The Nigerian National Petroleum Company Limited has serviced part of its $3bn forward-sale loan from the African Export-Import Bank with crude oil worth N991bn in 2024, according to its 2024 financial statement report. The repayment was tied to Project Gazelle, a forward crude oil supply agreement signed in 2023.

On August 17, 2023, The PUNCH reported that the NNPC announced it had secured a $3.3bn emergency loan to repay crude oil obligations from Afreximbank. It explained that the loan would be used by the oil company to support the Federal Government in stabilising Nigeria’s exchange rate.

“The NNPC Ltd. and AFREXIM bank have jointly signed a commitment letter and Termsheet for an emergency $3bn crude oil repayment loan,” NNPC said in a statement.

“The signing, which took place today at the bank’s headquarters in Cairo, Egypt, will provide some immediate disbursement that will enable the NNPC Ltd. to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilising the exchange rate market,” it added.

Under the deal, NNPC committed to deliver 90,000 barrels of crude oil per day from Production Sharing Contract assets to back a funding facility. According to the 2023 financial statement, a drawdown of $2.25bn had already been achieved by 31st December 2023, with principal repayment scheduled to begin in June 2024.

The funding carried an interest rate of 3-month LIBOR plus 6.5 per cent, with a 6 per cent margin and 0.5 per cent liquidity premium.

According to the 2024 financial statement, the drawdown on the facility had reached N4.9tn out of a total available N5.1tn, while N991bn worth of crude oil had been lifted in repayment, leaving an outstanding balance of N3.8tn at the end of 2024.

The report read, “In December 2023, NNPC Limited entered into a forward sale agreement with Project Gazelle Funding Limited to supply 90,000 bbl. of crude oil per day from Production Sharing Contract Assets for the settlement of a 5-year N2.7tn funding.

“The funding was utilised by the company to finance an advance payment of future taxes and royalty obligations due to the federation on PSC assets managed by the Company on behalf of the Federation.

“As at 31st December 2024, a drawdown of N4.9tn has been achieved from the initial facility of N5.1tn. The interest rate for the facility is 3-month SOFA plus 6.5 per cent while the margin and Liquidity Premium of 0.5 per cent respectively. A total value of Crude Oil worth N991bn has been lifted with a balance of N3.8tn as at 31st December 2024.”

The repayment was made between June and December 2024. However, NNPC did not disclose the identity of the offtakers or exact delivery volumes fulfilled in 2024.

The Project Gazelle arrangement has become one of NNPC’s most significant forward-sale financing vehicles, following a trend of oil-backed loans designed to shore up government revenues, refinance legacy debts, and meet budgetary obligations amid limited fiscal buffers.

The PUNCH earlier reported that the NNPC Ltd is burdened with crude-backed loan obligations estimated at N8.07tn.

The liabilities stretch across multiple forward-sale and project-financing arrangements that are expected to be serviced through substantial crude oil and gas deliveries. The commitments have become a major pillar of NNPCL’s funding structure following years of fiscal pressure, volatile crude production, and declining upstream investment.

Several of the facilities were used to refinance older debts, fund refinery rehabilitation, support cash flow, and meet government revenue obligations.

When assessed together, the company’s major crude-for-loan facilities—Eagle Export Funding (21,000 bpd), Project Yield (67,000 bpd), Project Leopard (35,000 bpd), and Project Gazelle (90,000 bpd)—represent a combined commitment of 213,000 barrels per day, in addition to separate gas-delivery obligations under the NLNG arrangement.

The volume equates to a sizeable share of Nigeria’s daily crude output, underscoring the long-term implications of these arrangements for government revenue, export allocation, and operational flexibility.

The PUNCH also reported that Nigeria’s gross profit from crude oil and gas sales plunged by N824.66bn in 2024 despite a rebound in oil production, according to figures from the Budget Implementation Report for the fourth quarter of 2024 released by the Budget Office of the Federation.

Data from the report revealed that gross profit from crude and gas sales fell to N1.08tn during the year, from N1.90tn in 2023, representing a 43.32 per cent decline.

The Chief Executive Officer of AHA Strategies and oil and gas expert, Mr Ademola Adigun, earlier linked Nigeria’s declining oil earnings to opaque crude-for-cash agreements and undisclosed loan repayments that have tied up part of the country’s crude output.

He said some of the government’s oil barrels were already committed to debt settlements and forward-sale contracts, reducing the actual volume that brought fresh revenue into the Federation Account.

Adigun said, “Some of our crude is already tied up in loan agreements. The problem is that Nigeria doesn’t know the full details of these transactions because there’s little transparency around them.”

He explained that several crude-backed projects, such as Project Gazelle, were carried out without proper public disclosure or parliamentary scrutiny.

He added that the Nigeria Extractive Industries Transparency Initiative should strengthen its audits to determine how much of the country’s crude is being used for debt repayment or swap transactions.

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Business

Yuletide: Dangote assures Nigerians of stable fuel supply

Published

2 days ago

December 6, 2025

Newsbreak365_Admin

Chairman of Dangote Group, Aliko Dangote, on Friday said Nigerians will no longer experience fuel queues during the Christmas and New Year seasons.

Briefing State House correspondents after meeting with President Bola Tinubu at the Aso Rock Villa, Abuja, Dangote said his refinery has formally notified the Nigerian Midstream and Downstream Petroleum Regulatory Authority of its readiness to deliver 50 million litres of Premium Motor Spirit daily, far above national consumption.

He said, “Historically, Nigeria has battled fuel queues since 1972. For the first time, we are eliminating those queues, not through imports but by producing locally.

“Even when we were servicing the refinery, there were no queues. I can assure you that queues are now history.”

Dangote stated that the refinery will soon produce surplus volumes, adding that by February, it will supply 15–20 million litres more than Nigeria needs.

This, he argued, will allow exports to neighbouring countries, reducing the incidence of fuel scarcity across West Africa.

The industrialist also disclosed that domestic manufacturers, especially in the plastics industry, will now enjoy reliable access to locally produced feedstock, ending years of reliance on imports estimated at $400m annually.

Dangote also announced an expansion programme that will raise refinery capacity to 1.4 million barrels per day by 2028, surpassing India’s Reliance refinery, the world’s largest, at 1.25 million barrels per day.

“We have already signed the necessary agreements.

“Construction piling begins before the end of January, and we will deliver on schedule,” he announced.

He revealed plans to scale up the company’s urea production to 12 million tonnes annually, positioning Nigeria to overtake Russia and Qatar as the world’s leading producer.

“Our goal is to use our fertilizer company to supply the entire African continent,” Dangote said.

Dangote attributed the recent drop in petrol and diesel prices to increased competition and reduced smuggling.

“Prices are going down because we must compete with imports.

“Luckily, smuggling has dropped significantly, though not completely,” he explained.

He noted that the refinery business is a long-term national investment, saying, “We’re not here to recover $20 billion overnight.

“The legacy I want to leave is that whatever Nigerians need, fuel, fertiliser, power, we will be part of delivering it.”

Dangote further highlighted logistics constraints affecting Nigeria’s solid minerals sector, particularly the congestion of major ports.

“Apapa is full. Tin Can is full. Lekki is mainly for containers.

“You cannot export coal or copper if you have nowhere to ship from,” he noted.

To curb this, he explained that the Group is developing what would become West Africa’s largest deep-sea port at Olokola, expected to be completed in two to two-and-a-half years.

The Kano-born businessman expressed support for the Tinubu administration’s naira-for-crude initiative, describing it as a patriotic move to strengthen the economy, although he acknowledged pushback from international oil companies.

According to him, “It’s a teething problem, but it will be resolved, either through legislation or administrative action.”

On concerns about global competition, Dangote maintained that the refinery will thrive.

He said, “What we want is to make Nigeria the refining hub of Africa. All African countries import fuel. We want what we consume to be produced here.”

He also endorsed the government’s Nigeria-first industrial policy and urged wealthy Nigerians to channel resources into productive investment rather than luxury spending.

“If you have money for a private jet, invest in industries and create jobs,” he stated, adding that domestic investors must drive industrialisation to attract foreign capital.

Dangote acknowledged past hurdles, policy instability, smuggling, and factory closures, but expressed optimism that the country is now on a stable path toward sustainable industrial growth.

“Domestic investors must lead the way. Once they do, foreign investors will follow.

“Nobody advertises a good restaurant; when the food is good, word spreads,” he explained.

He described his meeting with President Tinubu as a routine consultation on the economy and business environment, noting that it was “a very fruitful meeting.”

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