The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced plans to enforce the supply of crude oil by international oil companies (IOCs) to the Dangote oil refinery and other refineries in the country. This decision comes in response to claims by the Chairman of the Dangote Group that IOCs were unwilling to sell crude to the refinery.
According to Olaide Shonola, the spokesperson for NUPRC, the commission is intervening to ensure the local sale of crude to Dangote and other refineries. Shonola stated that while the commission cannot force the IOCs, it can mandate them to sell to the Dangote refinery through clear directives based on its regulatory functions.
In an interview with CNN, Aliko Dangote expressed frustration that IOCs were reluctant to sell crude to the 650,000 barrels capacity oil refinery, preferring to export crude for foreign exchange. He emphasized that Africa’s growth is hindered by its reliance on exporting raw materials and importing finished goods. Dangote highlighted the potential benefits of the refinery, including reducing CO2 emissions and eliminating the need for numerous ships importing and exporting oil.
In April, NUPRC issued a rule requiring oil producers to prioritize selling crude to domestic refineries before meeting foreign demands. However, it appears that IOCs are not complying with this directive, prompting NUPRC’s intervention.
