News
New refineries: NNPCL may cut crude supply to Dangote plant
This reduction is expected to take place as part of adjustments under the government’s naira-for-crude initiative following the coming onstream of the Warri and Port Harcourt refineries.
Both refineries currently operate at a combined capacity of about 135,000 barrels per day. The plants, managed by the Nigerian National Petroleum Company Limited, commenced operations recently after years of neglect by successive governments, preferring fuel imports.
It was gathered that the planned reduction of crude to the Dangote refinery was also predicated on the necessity to ensure a sufficient supply of crude to all refineries.
This is aimed at boosting competition in the downstream sector, with the government facilitating this through the naira-for-crude initiative. Before the initiative, the government used to allocate about 445,000 barrels per day of crude to domestic refineries operated by NNPCL.
Impeccable sources knowledgeable about the development disclosed the planned slash in crude supply to the Dangote refinery during a chat with our correspondent on Wednesday.
One of the sources who did not want to be mentioned because he was not permitted to speak with the press, confirmed to The PUNCH that, “It is clear that crude allocation to Dangote refinery and other local refineries will be reduced because all our refineries are coming back. Old Port Harcourt is working. New Port Harcourt is almost done. Warri just joined last week. “
Last year, the Federal Executive Council adopted a proposal by President Bola Tinubu to sell crude to the Dangote refinery and other
upcoming refineries in the local currency.
FEC approved that the 450,000 barrels meant for domestic consumption be offered in naira to Nigerian refineries, using the Dangote refinery as a pilot.
Similarly, other refineries with lower capacity were scheduled to receive allocations.
Findings showed that the $20bn Lekki-based plant was allocated about 300,000 barrels per day out of the 450,000bpd approved by the government.
The agreement was designed to last six months in the first instance, pending further review by the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency.
However, this agreement will undergo slight adjustments following the commencement of refining operations at the 210,000PortHarcourt refinery and the 125,000 Warri refinery.
The source stressed that the only solution to the impending crude supply cut was for oil production to improve.
The official added, “Warri is now onstream, too, and Kaduna is coming. So the current share of those 450,000 barrels will now be shared between all of them. Remember also that the BUA refinery is coming.
“So, it is very likely that the 300,000 barrels the Dangote refinery is getting currently will be reduced. The formula for how it would be shared is still sketchy, but it is almost certain that it would be reduced. NNPCL won’t deprive itself of crude oil.
“At least, if Port Harcourt will get 50,000 barrels. Other refineries’ share will be reduced to 250,000. New Port Harcourt will come. Warri, too, is still there. So the only solution to this thing is to increase production, which the government is working hard on.”
The government had redirected crude allocation of 445,000 barrels formerly disbursed to the Warri, Kaduna, and Port Harcourt refineries following their shutdown to the Dangote refinery.
The official also stated that the government has stopped selling its crude on credit to local refineries for improved revenue collection.
“Another issue now is that the government will no longer sell its crude on a credit basis. You would have to pay before you can pick up crude products. The refiners are not happy about it, but revenue to the government is also important.”
The Dangote refinery may fall back on crude oil import, which is subject to international pricing.
Commenting on the latest development, the Crude Oil Refinery Owners Association of Nigeria stated that the initiative was an intervention designed to address the foreign exchange market volatility and drive down the retail price of petrol, which has been achieved.
The CORAN Publicity Secretary, Eche Idoko, in an interview, however, argued that the coming onstream of the Warri and Port Harcourt refineries is not expected to cut down allocation to local refineries.
He said, “The naira for the crude agreement was purely an intervention at the time to boost local production and then provide some cushion from the volatility of the foreign exchange market. It wasn’t so much about the crude but the FX.
“While I don’t know the mind of the government and regulators if one would infer from the solution to address the volatility, the coming onstream of the Warri and Port Harcourt refinery is to make sure the price of petrol remains affordable for Nigerians. You would agree with me that against all norms, the petrol price has dropped in the last month. We still expect that the price will drop further.
“If we go by this analogy, I don’t think it would change the announcement by the government concerning the naira for crude. However, the agreement signed for this deal stated that it was for refineries producing PMS, which only Dangote and Port Harcourt are currently doing. The one in Warri is not producing because it’s undergoing rehabilitation.”
Idoko pointed out that “this also indicates that there is a serious need for the upstream segment to ramp up production and produce more crude.”
Meanwhile, the national oil company may encounter new challenges in meeting local crude demands, with fresh indications that the oil firm is seeking an additional $2bn to stabilise its finances and invest in new oil infrastructure to boost crude oil production.
A report by Africa Intelligence recently stated the NNPC should announce in the next few days that it has finalised the new syndicated crude oil-backed loan.
Christened Project Leopard, the operation, it said, will enable the company to raise $2bn in total in exchange for crude oil.
This will push the volume of loans for crude to $8bn within four years. The country is still repaying these loans.
These deals have continued despite complaints from domestic refineries that the national oil firm is not meeting its quota.
The country’s average daily production stood at 1.8m barrels per day as of November 2024.
Last year, the Vice President of the Dangote Group, Edwin Devakumar, accused NNPCL of failing to meet its crude oil supply obligations under the naira-for-crude agreement.
Devakumar explained that the national oil company had committed to supplying the refinery with a minimum of 385,000 bpd under the crude-for-naira deal.
“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.
The CORAN official also lamented the same issue, stating, “We trust that the government will listen to us for the naira for crude and address the issue of the non-availability of crude to local refineries. CORAN, as a body representing local refineries, is willing to work with the government in any way to increase the quota. Private refineries should also be allowed to own marginal fields.” 123m barrels crude
Meanwhile, the Nigerian Upstream Petroleum Regulatory Commission has revealed that Port Harcourt Refinery, Dangote Refinery, Warri Refinery, and other functional refineries will receive 123,480,500 barrels of crude oil between January and June 2025, which is the total crude requirement of refiners during the period.The regulator estimated daily crude oil requirements for local refiners at 770,500 barrels per day and a monthly requirement of 23,812,000 barrels per month.
The NUPRC said this in the Domestic Crude Oil Requirement and Crude Oil Production Forecast for the First Half of 2025 obtained by our correspondent on Wednesday.
To meet the requirement, the NUPRC said it targets crude oil output to hit over two million barrels per day.
The production target is hinged on Project 1 Million Barrels, which was launched in October 2024.
The NUPRC is empowered by the PIA to ensure domestic crude supply to local refineries based on the ‘willing buyer, willing seller’ model.
The regulator said the move is under Section 109 of the Petroleum Industry Act, 2021 and it is aimed at effective capacity utilisation of the nation’s domestic refineries by ensuring a consistent supply of crude oil.
The NUPRC said, “The forecasted daily crude requirement for Refineries which is 770,500 Bpd), is about 37 per cent of the forecasted first half 2025 average daily production of 2,066,940 Bpd.”
The forecast is for nine active refineries, according to the NUPRC.
A breakdown showed that the Dangote Refinery and Petrochemicals require 99,550,000 barrels from January to June 2025. The refinery’s daily requirement is 550,000mbpd while the monthly requirement is 17.05 million barrels. The facility, however, has an optimal capacity of 650,000bpd.
The Warri Refinery has the second highest requirement, estimated at 13,5875,000 barrels in the first half, while the daily and monthly requirements are 75,000bpd and 2.325 million barrels, respectively.
The Kaduna Refinery and Petrochemical Company Ltd has an estimated requirement of 3,960,000 barrels. The refinery’s daily requirement is 66,000bpd and 1,980,000 barrels.
Port Harcourt Refinery Company Ltd (Old) has a daily requirement of 60,000 barrels per day, a monthly requirement of 1,860,000 barrels and a half-year requirement of 2,868,000 barrels.
Port Harcourt-based Aradel Refinery is estimated to consume 1,267,000 barrels in the first half of 2025 while the daily need of the refinery is 11,000bpd and 215,000 barrels monthly.
OPAC Refineries in Delta State has a crude requirement of 5,000bpd, 150,000 barrels per month and 900,000 barrels in the first half.
Imo State-based Waltersmith Refinery and Petrochemical Company Ltd have a half-year requirement of 814,500 barrels, a monthly and daily requirement of 139,000 barrels, and 4,500 barrels per day.
Edo State-based Dupot Midstream Company Ltd has a half-year, monthly and daily requirement of 360,000 barrels, 62,000 barrels and 2000bpd, respectively.
Edo Refinery and Petrochemical Company Ltd has a half-year requirement of 186,000 barrels, a monthly requirement of 31,000 barrels and a daily requirement of 1,000.
NUPRC said, “It is leveraging the capacity of upstream operators to meet the target daily production of 2,500,000 bpd in the short term.
“This strategic initiative aligns with Nigeria’s commitment to bolstering its domestic refining capacity and ensuring the sustainability of its oil industry.
“The first half of 2025 is expected to witness increased synergy between local refineries and producing companies, setting the stage for a more robust and self-reliant petroleum landscape in Nigeria.”
PUNCH
“If You Have Evidence Against Stanley Mbam, Charge Him; Otherwise, Release Him” — Oganiru Izzi
A socio-cultural organisation of Izzi extraction, Oganiru Izzi, has challenged Ebonyi State Governor, Chief Francis Ogbonna Nwifuru, to either release the state’s sacked Commissioner for Works, Mr Stanley Mbam, or charge him before a competent court if the government has credible evidence of wrongdoing against him.
The group said the continued detention of the former commissioner without a formal charge raises concerns about due process, constitutional rights and the rule of law.
The leader of Oganiru Izzi, Mr Godwin Mbam, made the demand while speaking with correspondents of National Issue Newspapers at the Crack Department of the Ebonyi State Police Command in Abakaliki.
Mbam condemned what he described as the prolonged detention of Stanley Mbam without allowing a court to determine whether he had committed any offence.
He challenged the state government to produce evidence if it believes the former commissioner committed a criminal offence.
“If there is credible evidence against him, charge him to court and let the court decide. If there is no case against him, he should be released,” Mbam said.
He also appealed to the Ebonyi State Police Command to uphold the Constitution and resist any pressure that could result in unlawful detention.
Vanco Flyover: “We Will Reveal the Full Details”
Mbam also issued a three-day challenge to Governor Nwifuru, declaring that if the former commissioner was not released or charged to court, his organisation would make public what it described as the “full details” of the Vanco Flyover project.
According to him, the proposed disclosure would address issues surrounding the project, including its funding, payments, contractual arrangements and other financial details.
“We will let the world know the full details of the Vanco Flyover and how the funds were utilised,” he warned.
He further challenged the state government to demonstrate transparency by making relevant documents concerning the project available to the public.
“What About the Alleged ₦1.5 Billion Forfeiture?”
The Izzi group also questioned what it described as the selective application of the state government’s anti-corruption campaign.
Mbam referred to allegations involving an account reportedly frozen by the Economic and Financial Crimes Commission (EFCC) and an alleged ₦1.5 billion forfeiture to the Federal Government.
He questioned why, according to him, the governor had allegedly not taken similar action if the facts surrounding the matter warranted it.
Mbam stressed that he was not opposed to the fight against corruption but insisted that any anti-corruption campaign must be comprehensive, transparent and applied equally.
“If Governor Nwifuru wants to fight corruption, let him fight it holistically. Nobody should be targeted while other serious allegations are ignored,” he said.
“If Nwifuru Says He Knows Nothing, We Will Produce the Facts”
Mbam further challenged Governor Nwifuru to publicly state whether he was aware of alleged corruption issues within the Ministry of Works.
“If Nwifuru publicly claims that he is unaware of corruption in the Works Ministry, I will make public the facts available to me. The facts will shock the state,” he declared.
He insisted that the matter should not degenerate into a political vendetta, arguing that the appropriate place to determine criminal liability is a court of law.
According to him, the people of Ebonyi State deserve clear answers concerning the Vanco Flyover and other issues involving public funds.
“Everybody Should Be Subject to the Law”
The Oganiru Izzi leader maintained that the controversy should be resolved through transparency, documentary evidence and due process.
“If there is a case, charge him. If there is no case, release him. The government cannot claim to be fighting corruption while abandoning the principles of justice and the rule of law,” he said.
Mbam warned that failure to address the issues could compel the organisation to make further disclosures concerning the Vanco Flyover and other matters it considers to be in the public interest.
By Our Correspondent
As Nigeria celebrates its 66th Independence Anniversary, the candidate for the House of Representatives seat representing the Ezza South/Ikwo Federal Constituency, Hon. Chief Kevin Tobias Chukwu, has called on Nigerians to remain hopeful and committed to building a better country.
Chukwu, also known as Ochiri Ozua 1 of Amagu Ikwo, made the call in an Independence Day message to Nigerians, particularly the people of Ezza South/Ikwo Federal Constituency and Ebonyi State.
He described the anniversary as not only a moment for celebration but also an opportunity to reflect on the state of the nation and the responsibilities of leaders in building a Nigeria that meets the aspirations of its citizens.
According to him, Nigeria’s journey since independence has been marked by significant challenges, with millions of citizens currently facing economic hardship, while young people continue to search for opportunities and many communities contend with insecurity and uncertainty.
Despite these challenges, the Ebonyi politician said the resilience of Nigerians remained a source of hope for the country’s future.
“I believe in the resilience of our people. I believe in the ingenuity of our youths, the strength of our women, the wisdom of our elders and the determination of ordinary Nigerians who wake up every morning and refuse to give up on this country,” he said.
Chukwu, however, stressed that hope must be matched by responsible leadership, arguing that public office should be viewed as a responsibility rather than a privilege.
He called for leadership that prioritises the protection of lives, creation of economic opportunities, provision of infrastructure, strengthening of institutions and responsible management of national resources.
The candidate also emphasised the need to create an environment where young Nigerians can pursue successful lives within the country and where hard work, merit and enterprise are rewarded.
He said Nigeria had “come too far to surrender to hopelessness,” urging citizens and leaders alike to remain committed to the country’s progress.
“A better Nigeria is still possible, but it will require responsible leadership, accountable institutions and citizens who refuse to give up on their country,” he said.
Chukwu concluded by expressing optimism about Nigeria’s future, declaring: “Nigeria will rise. Nigeria must rise. And together, we must build the Nigeria we deserve.”
He also paid tribute to the nation’s past heroes, praying that their sacrifices would continue to inspire the country.
“May the labour of our heroes past never be in vain,” he said, as he wished Nigerians a happy 66th Independence Anniversary.
By Okey Maduforo, Awka
As Nigeria celebrates its 66th anniversary of independence from colonial rule, democracy in the country has continued to evolve and deepen, the Anambra State Chairman of the All Progressives Congress (APC), Senator Emma Anosike, has said.
Anosike made the observation in a message to mark Nigeria’s Independence anniversary, noting that despite the challenges the country had encountered since 1960, its democratic system had continued to improve under successive administrations.
According to him, since the return to democratic rule in 1999, Nigeria has witnessed relatively smooth transitions from one administration to another, while citizens have continued to exercise their fundamental rights to hold governments accountable for their performance.
“Before the return of the democratic process, it was indeed difficult and near taboo to challenge the leadership of the country, and those who may have attempted it in the past faced grave consequences.
“Similarly, we have had smooth transitions from one dispensation to another, producing five presidents through the ballot and not through the barrel of the gun. These elected presidents were produced by different political parties.”
Anosike said the administration of President Bola Ahmed Tinubu had sustained the country’s democratic principles and created an avenue for Nigerians, irrespective of tribe, race or religion, to express their views on government policies and programmes.
“Under the stewardship of President Bola Ahmed Tinubu, Nigerians have been enjoying the freedom to express themselves over issues, policies and programmes of government, and those expressions have been shaping and guiding the administration of Mr President,” he said.
The APC chairman said Nigeria’s 66th independence anniversary provided an opportunity for citizens to reflect on the country’s journey as a nation and the progress made since independence.
He said President Tinubu’s Independence Day broadcast had offered another opportunity for Nigerians to renew their hope for a greater and more prosperous country.
Anosike also commended what he described as the “enormous infrastructural development” taking place across the country under the Tinubu administration.
He urged Nigerians to continue to support and have faith in the administration as the country approaches the 2027 general elections.
An Elder Statesman, Chief Hycienth Ngwu, has called on political leaders and policies formulators to ensure governmental policies and programmes directly touch lives of the people and reduce hardship in the country.
Ngwu, who is a prominent community leader in Enugu, urged Nigerians to maintain peace within neighbourhoods and communities, as no meaningful development can take place without peace.
The statesman made the call on Thursday in Enugu while reacting to the developmental efforts of Nigeria at its 66th Independence.
He said that previous and present administrations had put in place policies and programmes to reset the socioeconomic fabric of the nation.
Ngwu said that while the removal of fuel subsidy, and unification of the foreign exchange had good intentions, their impact is yet to reflect on the lives and livelihoods of vast majority of Nigerians.
He urged leaders to ensure that public resources were properly managed while citizens remained patient with reforms aimed at improving the socioeconomic status of the country.
The elder statesman noted that at 66th independence, the country was still struggling on keeping its peace and co-existence as a country; adding that the founding leaders of Nigeria envisaged a closely united, bonded and peaceful country.
He called for return to policies that promote local production, indigenous industries and entrepreneurship, arguing that excessive dependence on imports had continued to weaken the country’s productive capacity.
According to him, we are yet to achieve economic independence even as we needed to do more on non oil revenue earns as the greater part of the world is moving towards greener and clean energy.
“Greater emphasis should be on skills acquisition, creativity and entrepreneurship education system, as academic qualifications without practical skills could leave graduates dependent on scarce white collar jobs.
“We ought to be economically productive nation capable of producing and exporting goods while developing its human capital,” he said.
Ngwu noted that current insecurity and social instability could be partly attributed to poverty and ignorance, while calling for greater honesty and trust between leaders and citizens.
“Corruption, tribalism and selfishness must be addressed if Nigeria is to achieve peace and lasting progress,” he added.
He also called for the scrapping of state electoral commissions as they have not helped in deepening democracy at that level. The National Election body should take over that responsibility.
As Nigeria marks its 66th Independence Day, Macmaduson Concepts Limited, a leading provider of HVACR,industrial parts, sensors, electrical and plumbing materials, has extended warm Independence Day greetings to its customers, clients and business partners across the country.
In a goodwill message to mark the occasion, the company expressed appreciation to its valued customers for their continuous support, trust and partnership over the years.
Macmaduson Concepts Limited, which specialises in HVACR,Industrial Materials, sensors, air-conditioners, refrigerators, cold rooms, chillers, refrigerants, electrical materials and plumbing materials, said the occasion provides an opportunity to celebrate Nigeria and reflect on the nation’s journey.
The company wished Nigeria continued growth, unity, peace and prosperity, while expressing hope for a brighter future for all Nigerians.
The message from the company reads in part:
At Macmaduson Concepts Limited, we celebrate our great nation, Nigeria, and appreciate our valued clients for their continuous support, trust and partnership. May Nigeria continue to grow in unity, peace and prosperity.”
The company concluded its Independence Day message with the theme: “One Nation, One People, A Brighter Tomorrow.”
Happy Independence Day, Nigeria!
Happy 66th Independence Anniversary from Macmaduson Concepts Limited.
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