The Nigerian National Petroleum Company Limited (NNPC) is facing mounting criticism from the Dangote Refinery over alleged shortfalls in crude oil deliveries under the government’s naira-for-crude initiative.
The program, launched in October, aims to address foreign exchange constraints by allowing local refineries to purchase crude oil in naira. Dangote Refinery, the largest in Africa, was expected to receive a minimum of 385,000 barrels per day (bpd) from NNPC.
However, Edwin Devakumar, Vice President of Dangote Industries, has accused NNPC of failing to meet this target.
According to Reuters, Devakumar characterised the volume of crude currently supplied by NNPC Limited as “peanut,” though he did not specify the exact amount.
“We need 650,000 barrels per day, and NNPC Ltd agreed to supply a minimum of 385,000 bpd, but they are not even delivering that,” Devakumar stated.
To address challenges in accessing foreign currency, the government in July said it would sell crude priced in naira to local refineries for an initial six months starting in October.
Findings showed the $20 billion Dangote Refinery had resumed importing crude oil from the United States after a three-month pause.
The refinery reportedly purchased approximately two million barrels of WTI Midland crude from Chevron Corp., according to anonymous sources familiar with the transaction.
The shipment Is scheduled to arrive at the 650,000 bpd petrochemical plant in Lagos next month.
Shipping records reveal that Chevron contracted the supertanker Azure Nova to transport the crude from the US Gulf Coast to the refinery, with loading expected around December 5.
(Business Day)
