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NNPC Limited and Dangote Refinery: Discussions on New Naira Crude Contract Currently Ongoing - NNPC Limited and Dangote Refinery: Discussions on New Naira Crude Contract Currently Ongoing - NNPC Limited and Dangote Refinery: Discussions on New Naira Crude Contract Currently Ongoing - NNPC Limited and Dangote Refinery: Discussions on New Naira Crude Contract Currently Ongoing - NNPC Limited and Dangote Refinery: Discussions on New Naira Crude Contract Currently Ongoing - NNPC Limited and Dangote Refinery: Discussions on New Naira Crude Contract Currently Ongoing - NNPC Limited and Dangote Refinery: Discussions on New Naira Crude Contract Currently Ongoing - Diphtheria Scare: Lagos Govt Rolls Out Emergency Vaccination at King’s College Annexe - Diphtheria Scare: Lagos Govt Rolls Out Emergency Vaccination at King’s College Annexe - Diphtheria Scare: Lagos Govt Rolls Out Emergency Vaccination at King’s College Annexe

Energy

NNPC Limited and Dangote Refinery: Discussions on New Naira Crude Contract Currently Ongoing

…Agreement was for six months and ends in March 2025 The NNPC limited have come out to clarify recent reports circulating on social media which suggested the company had unilaterally terminated its crude oil sales agreement with Dangote Refinery. According…

Business

Dangote Ensures Nigerians Buy Fuel Between N860-N895 Nationwide – Absorbs N16 Billion Loss to Maintain Uniform PMS Prices Nationwide

To refund customers who buy above advertised rates. Refunds N65/litre to Marketers including MRS, Heyden, Ardova Dangote Petroleum Refinery & Petrochemicals has announced that it will refund customers who purchase Premium Motor Spirit (PMS) at rates higher than the advertised…

Energy

Dangote Refinery Reduces Diesel Price to N1,020 per Litre

Dangote Petroleum Refinery & Petrochemicals has reduced the cost of its diesel product to N1,020 per litre, down from N1,075 per litre at the gantry price, in an effort to better serve its customers and Nigerians in general. Since it…

Business

NESG Pushes FG Support for $1 Trillion Local Economy as Dangote Sends Jet Fuel to Aramco

The Federal Government has been urged to support local industries in driving economic growth and achieving a $1 trillion economy target for Nigeria. This call was made by the Nigerian Economic Summit Group (NESG) during a visit to Dangote Fertiliser…

PMS Now N890 - Dangote Refinery Crashes Ex-Depot Price

Oil & Gas

Petrol Now N890 – Dangote Refinery Crashes Ex-Depot Price

From today, Saturday February 1, Nigerians will now pay lower rates for Premium Motor Spirit (PMS), commonly known as petrol. This is as the Dangote Petroleum Refinery, earlier today reduced the ex-depot price of PMS from N950 to N890 per…

The Dangote Petroleum Refinery, one of Africa’s largest and most ambitious refinery projects, is set to receive 12 million barrels of crude oil from the United States, according to The Africa Report. This development underscores the challenges the $20 billion facility faces as it struggles with insufficient local crude supply to meet its refining goals. The shipment, which departed the U.S. recently, is expected to arrive in Nigeria by February, further highlighting the growing reliance on international sources to fuel the refinery’s operations. The Dangote refinery, located in Lekki, Lagos State, aims to ramp up its refining capacity to 650,000 barrels per day (bpd) by June 2025. However, local supply issues have hindered progress. The Nigerian National Petroleum Company Limited (NNPC), the country’s state oil company, has faced difficulties in meeting its obligations to supply enough crude oil to the refinery. An insider source told The Africa Report, “About 12 million barrels of crude have departed the US and should arrive in Nigeria by February.” This import is a strategic move to ensure the refinery’s production targets are met amid local supply shortages. While the Dangote refinery has already increased its output to about 500,000 bpd, achieving its target of 650,000 bpd by mid-year remains a significant challenge without steady access to crude oil. NNPC is currently struggling to provide the Dangote refinery with the 350,000 bpd required from the 450,000 bpd allocated for Nigeria’s domestic consumption. This mismatch has led refinery officials to look beyond Nigeria’s borders for the necessary feedstock. According to a refinery official, “Currently, we are at 500,000 bpd; we will ramp to 650,000 by midyear. You know what it means? So, it is a normal process to source crude oil anywhere it is available.” In response to the ongoing challenges, the Dangote refinery is actively seeking to bolster its crude oil storage capacity. The facility is constructing eight additional tanks, increasing its storage by 41.67% to a total of 3.4 billion liters. “Importing crude from other countries instead of buying locally means that our crude stockpiles will have to be higher,” explained Devakumar Edwin, Vice President in charge of the oil and gas business at Dangote Industries. The refinery’s decision to import crude oil comes at a time when President Bola Tinubu’s government has been pushing for a “naira-for-crude” deal. Since July 2024, the Nigerian government has directed the NNPC to sell crude oil to local refineries in naira, a move aimed at stabilizing Nigeria’s foreign exchange reserves. In October 2024, the government further restricted the sale of crude to only those refineries involved in petrol production, initially focusing on the Dangote refinery. Although the refinery is benefiting from the naira-for-crude arrangement, sources within the industry acknowledge that the NNPC’s crude supply remains insufficient. The Dangote refinery was expected to require 550,000 barrels of Nigerian crude daily to meet its full production needs, amounting to approximately 17 million barrels per month. However, with local supply falling short, Dangote has had no choice but to source additional crude from global markets. As part of its long-term strategy, the Dangote refinery had previously issued a term tender for two million barrels of West Texas Intermediate (WTI) Midland crude monthly, for 12 months starting in July 2024. This tender for a total of 24 million barrels in one year is further evidence of the refinery’s growing dependence on international crude suppliers. The Dangote refinery is already playing a crucial role in Nigeria’s fuel production, supplying gasoline, diesel, and aviation fuel both domestically and to international markets. Despite the logistical hurdles, the refinery remains optimistic about achieving its ambitious refining targets, with plans to expand its capacity and reduce Nigeria’s reliance on imported refined products. Refinery officials are hopeful that the situation will improve as local crude supply stabilizes. However, the reliance on imported crude highlights the fragility of Nigeria’s oil supply chain and the challenges faced by the country’s refining industry. As the Dangote Petroleum Refinery continues its journey toward full capacity, the importation of crude oil from the United States marks a critical moment in the project’s development. Whether local suppliers, such as the NNPC, can meet the demand of such large-scale refineries in the future will be key to the country’s energy security and economic stability. The situation also emphasizes the need for continued reforms in Nigeria’s oil sector, with the government’s commitment to increasing the capacity of local refineries likely to play a pivotal role in the country’s energy future.

Oil & Gas

Dangote Refinery Faces Crude Oil Supply Challenges, Sources 12 Million Barrels from US

The Dangote Petroleum Refinery, one of Africa’s largest and most ambitious refinery projects, is set to receive 12 million barrels of crude oil from the United States, according to The Africa Report. This development underscores the challenges the $20 billion…

Energy

Ardova, Heyden Join Dangote Refinery to Ensure Affordable PMS for Nigerians

Ardova Plc and Heyden Petroleum have entered into a bulk purchase agreement with the Dangote Petroleum Refinery. This strategic move, according to a statement by the Refinery, is designed to ensure a steady supply of petroleum products at affordable prices,…

Energy

Ardova Plc agrees Bulk Purchase Framework with Dangote Refinery

In a bid to guarantee supply security at affordable prices for its customers, Ardova Plc, one of Nigeria’s major integrated downstream oil and gas businesses has agreed to a bulk purchase framework with Dangote Refinery. This framework will see Ardova…

Oil & Gas

Dangote Commends President Tinubu on Crude for Naira Swap Impact

Nigerians are set to enjoy better supply and more affordable pms rates as Dangote Refinery has partnered with MRS to sell Premium Motor Spirit (PMS) at N935 per litre. The new price, reduced from N970 per litre will take effect…

Energy

Dangote Refinery Cuts Petrol Price to N899 per litre

Dangote Petroleum Refinery has announced a new ex-depot price of N899.50 per litre for Premium Motor Spirit (PMS), commonly known as petrol, effective immediately. It would be recalled that on November 24th, the refinery lowered the price of PMS to…