Oil Refineries in Nigeria: A Growing Concern
Concerns are rising over the approval process of refining contracts in Nigeria, particularly with the Dangote Refinery, amid accusations of sabotage by International Oil Companies (IOCs) and weak enforcement of the Domestic Crude Oil Supply Obligations (DCSO) by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Stakeholders are questioning the contractual agreements for crude supply, especially with the recent $3.3 billion crude oil loan taken by the Nigerian National Petroleum Company Limited (NNPCL).
Despite Nigeria’s potential to produce 1.2 million barrels per day of oil refinery capacity, challenges persist in securing a reliable crude supply for local refineries. The Dangote Refinery, the Crude Oil Refinery Owners Association of Nigeria (CORAN), and other stakeholders are advocating for stricter enforcement of the DCSO to prevent disruptions in the refining process.
Experts emphasize the need for better planning and coordination between refinery owners and oil producers to ensure a steady crude supply and optimize profitability. The Nigerian government and regulatory agencies are urged to address these challenges to protect the interests of local refineries and promote the growth of the oil industry in the country.