|By Adejumo Adekunle –
- Civil Society Raises Alarm Over Crude Supply Cuts
- Concerned Nigerians Demand Federal Intervention
- Impact of Naira-for-Crude Policy Under Scrutiny
The Nigerian National Petroleum Company Limited (NNPCL) has come under pressure to prioritize crude oil supply to local refineries, including the privately-owned Dangote Refinery, amid concerns about potential supply cuts.
A civil society organization (CSO), Concerned Nigerian Citizens, raised this alarm on Tuesday during a press briefing in Abuja. The group expressed concern over alleged plans by the NNPCL to reduce its crude allocation to Dangote Refinery, which currently stands at 300,000 barrels per day under the Federal Government’s naira-for-crude initiative.
Recent reports suggest that the NNPCL is considering adjusting its supply arrangements following the operational commencement of the Port Harcourt and Warri refineries, which collectively have a production capacity of 135,000 barrels per day.
Addressing journalists, the National Coordinator of the CSO, Obinna Francis, alleged that such a move could stifle local investors and potentially monopolize the oil sector. He argued that the plan undermines efforts by the Dangote Refinery to make petroleum products more affordable for Nigerians, particularly in the wake of rising fuel costs since the removal of subsidies.
Doubts Over Refinery Efficiency
Francis also questioned the NNPCL’s claims that the Port Harcourt and Warri refineries are producing at 60-70% capacity. He criticized the corporation’s decision to prioritize government-run refineries over private ones, noting that Dangote Refinery operates without financial burdens on taxpayers, unlike its state-owned counterparts.
“The naira-for-crude agreement was designed to bolster local refining capacity and mitigate forex volatility, not to serve as a basis for reducing allocations to other refineries,” he said.
Calls for Intervention
The CSO called on President Bola Tinubu to intervene, emphasizing that any reduction in crude supply to Dangote Refinery could be misconstrued as having presidential approval. The group warned that the NNPCL’s actions might derail efforts to stabilize fuel prices, further compounding the economic challenges faced by Nigerians.
Concerns Over Borrowing and Public Sector Inefficiency
Highlighting recent projects such as Project Leopard and Project Gazelle, Francis decried the NNPCL’s growing debt obligations, including loans totaling $8 billion linked to crude oil transactions. He contrasted the inefficiency of government-owned refineries with the private sector’s track record in industries like telecommunications and power.
“The billions spent on maintaining public refineries could have funded critical sectors like education and health for years,” Francis noted.
Echoing recommendations by oil marketers, the CSO reiterated its call for the Federal Government to divest from government-run refineries, urging a shift toward private-sector-driven solutions for sustainable energy production.
