Dangote Group, has unveiled plans to finance the construction of a proposed 700,000 barrels-per-day (bpd) oil refinery in Kenya through a combination of internally generated cash, bond issuance and proceeds from a planned Initial Public Offering (IPO), as it deepens its footprint in Africa’s downstream oil sector.
The planned refinery, which will be located on Lamu Island along Kenya’s coast, is expected to become East Africa’s largest refining facility and strengthen the region’s energy security by reducing dependence on imported refined petroleum products.
According to Reuters, the project, which is expected to take about three years to complete, will supply refined petroleum products to Kenya and neighbouring countries, while advancing Dangote Group’s strategy of expanding refining capacity across the African continent following the commencement of operations at its 650,000bpd refinery in Lagos.
Vice president, Oil and Gas at Dangote Industries, Edwin Devakumar, revealed that preliminary works have already begun on the project. “The site has been selected, soil tests are under way, and design and engineering work has commenced. Kenya was the choice from the beginning,” Devakumar told Reuters.
He explained that funding for the refinery would come from a blend of internally generated revenue, debt raised through bond issuances and proceeds from the group’s proposed IPO.
Although he declined to disclose the exact cost of the project, Devakumar said the investment would be comparable to the cost of the group’s refinery in Lagos.
The Dangote Refinery, developed by Aliko Dangote, Africa’s richest man, eventually cost more than $20 billion before it commenced commercial operations in 2024, significantly above its initial estimate of about $9 billion announced in 2013.
The project’s cost escalated over the years due to site relocation, engineering complexities, the depreciation of the naira, disruptions caused by the COVID-19 pandemic and rising global inflation.
The Kenyan refinery represents Dangote Group’s largest refining investment outside Nigeria and underscores its ambition to become a leading supplier of refined petroleum products across Africa.
Dangote Group had previously explored plans to establish a refinery in the Tanzanian port city of Tanga but later shifted its attention to Kenya after assessing infrastructure availability, logistics and market opportunities.
Nigeria’s fiscal landscape has entered a new and consequential phase following President Bola Tinubu’s approval of a sweeping write-off of legacy debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account. The decision effectively wipes out the bulk of obligations accumulated over several years, closing a chapter marked by persistent disputes, reconciliations, and opaque accounting between the national oil company and federal revenue managers.
Yet, while the move brings temporary clarity to historical balances, it also throws into sharp relief deeper structural problems in revenue mobilisation, transparency, and the sustainability of public finances in Africa’s largest oil producer.
A long trail of disputed balances
For years, outstanding obligations owed by NNPC to the Federation Account have been a recurring flashpoint at meetings of the Federation Account Allocation Committee (FAAC). These debts—arising largely from crude oil liftings, royalties, and joint venture arrangements—were repeatedly reported, revised, and challenged, often without a definitive resolution.
At the October 2025 FAAC meeting, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reported that NNPC Ltd owed the Federation $1.48bn and N6.33tn, covering Production Sharing Contracts, Direct Sale Direct Purchase arrangements, Modified Carry Agreements, Royalty Adjustments, and Joint Venture royalty receivables.
These figures, however, were never universally accepted as final. Multiple reconciliation efforts over the years highlighted discrepancies between NNPC’s internal records and those of regulators and revenue agencies, fuelling mistrust among federal, state, and local governments that depend heavily on monthly FAAC disbursements.
Presidential intervention and reconciliation outcome
The latest development followed the work of the Stakeholder Alignment Committee on the Reconciliation of Indebtedness between NNPC Ltd and the Federation. After reviewing records up to December 31, 2024, the committee submitted its findings to the Presidency, recommending that most of the disputed balances be removed from the Federation’s books.
President Tinubu’s approval authorised the cancellation of about $1.42bn and N5.57tn out of the previously reported debts. In practical terms, this means that roughly 96 per cent of the dollar obligations and 88 per cent of the naira liabilities were written off.
The NUPRC confirmed that it has already effected the directive, passing the necessary accounting entries and formally adjusting the Federation Account to reflect the cleared balances.
Why the write-off matters
The debt cancellation represents more than a bookkeeping exercise. It effectively resolves a long-running legacy issue that has complicated federal revenue planning and intergovernmental relations. By clearing disputed historical obligations, the government aims to create a cleaner baseline from which future remittances can be tracked more transparently.
For state governments, many of which have complained that unresolved NNPC debts depress monthly allocations, the move provides some certainty—even if it does not immediately translate into higher revenues.
However, critics argue that wiping off debts without corresponding cash inflows raises questions about opportunity costs, especially at a time of mounting fiscal pressure, rising public debt, and growing social spending needs.
New debts, familiar concerns
Despite the cancellation of legacy balances, the problem of outstanding obligations has not disappeared. The NUPRC disclosed that statutory liabilities arising between January and October 2025 still stood at $56.81m and N1.02tn.
Although $55m was recovered during the month under review—leaving a modest dollar balance of $1.8m—the sizeable naira component remains unpaid. These figures underscore that while the past has been partially settled, current operational liabilities continue to accumulate.
The commission insists that these newer obligations are being actively monitored and will be recovered in line with statutory timelines, but the pattern mirrors earlier cycles that eventually produced the now-cancelled legacy debts.
Revenue targets missed, gaps widening
Perhaps more troubling than the debts themselves is the broader revenue performance of the upstream sector. Data from the same NUPRC report show a sharp shortfall in collections relative to projections.
In November 2025, the commission collected N660.04bn, far below the approved monthly target of N1.204tn. Royalties—the backbone of upstream revenue—were especially weak, with actual collections of N605.26bn against a projected N1.144tn.
Cumulatively, by the end of November, total approved revenue stood at N13.25tn, while actual collections amounted to just N7.60tn, leaving a gap of N5.65tn. Royalty revenues alone accounted for N5.63tn of that shortfall.
The figures also reveal a downward trend, with November collections falling significantly below October’s N873.10bn, raising concerns about production levels, pricing dynamics, compliance, and enforcement effectiveness.
Old audit battles refuse to die
The debt write-off has also revived attention on an even larger and more contentious issue: the alleged $42.37bn under-remittance to the Federation Account between 2011 and 2017, flagged by Periscope Consulting in an audit commissioned by the Nigeria Governors’ Forum.
NNPC Ltd has flatly rejected the findings, maintaining that all revenues for the period were properly accounted for. Periscope Consulting, on the other hand, insists that its audit uncovered substantial gaps that remain unresolved.
Caught between both positions, FAAC has ordered a joint reconciliation session, but officials acknowledge that the process remains unfinished—a reminder that Nigeria’s oil revenue disputes often span decades.
Structural roots of the problem
Industry experts say these recurring controversies are symptoms of deeper governance failures. Professor Emeritus of Petroleum Economics, Wumi Iledare, has described the situation as a “legacy problem” rooted in the pre–Petroleum Industry Act (PIA) era, when NNPC simultaneously acted as operator, regulator, and revenue collector.
Such overlapping roles, he argues, made transparent reconciliation almost impossible. Although the PIA has since separated these functions and corporatised NNPC Ltd, analysts warn that institutional habits and weak enforcement still undermine the reform’s full impact.
International scrutiny and reform promises
Global institutions have also kept Nigeria’s oil revenue management under scrutiny. The World Bank has repeatedly accused NNPC Ltd of incomplete remittances, noting that even after the removal of petrol subsidies, only about half of the resulting revenue gains have been transferred to the Federation Account.
According to the Bank, out of roughly N1.1tn in crude sales and related income in 2024, only N600bn was remitted, with the balance reportedly used to offset past arrears—an explanation that continues to fuel debate.
NNPC Ltd’s management, led by Group Chief Executive Officer Bayo Ojulari, has pledged to prioritise transparency, efficiency, and accountability. Observers say the credibility of these promises will be judged less by statements and more by consistent, verifiable remittance patterns.
A reset, not a resolution
Ultimately, the presidential approval to cancel NNPC’s legacy debts marks a significant reset in Nigeria’s fiscal accounting. It clears the slate of disputed historical balances and offers an opportunity to rebuild trust in the management of oil revenues.
Yet, with fresh debts accumulating, revenue targets repeatedly missed, and old audit disputes unresolved, the write-off may prove to be only a pause rather than a full stop. Whether this reset leads to lasting reform—or merely postpones the next round of controversies—will depend on how rigorously the new petroleum governance framework is enforced in practice.
LAGOS – The Federal Government has signed a Memorandum of Understanding (MoU) with Chinese infrastructure and Internet of Things (IoT) solutions provider, You Jie Te Environment Technology Ltd (YJT), to localise the manufacturing and assembly of Compressed Natural Gas (CNG) and electric vehicle (EV) infrastructure in Nigeria.
The agreement was executed through the Presidential Initiative on Compressed Natural Gas (Pi-CNG) and Electric Vehicles during a five-day working visit to YJT’s factories and corporate offices in Chengdu and Hangzhou, China.
The Nigerian delegation was led by the Executive Chairman of Pi- CNG, Barrister Ismaeel Ahmed.
YJT, a key player in the downstream oil and gas sector, specialises in infrastructure development and IoT-based solutions.
Under the partnership, both parties will collaborate on the local production and assembly of CNG dispensers, refuelling stations and EV charging facilities.
The initiative is aimed at deepening local content, reducing Nigeria’s dependence on imported equipment and accelerating the nationwide adoption of cleaner transport energy.
Beyond physical infrastructure, the MoU also provides for the deployment of advanced IoT solutions across Nigeria’s emerging CNG and EV ecosystem.
YJT’s smart monitoring technologies will be integrated with Pi-CNG’s National Gas Vehicle Monitoring System (NGVMS), enabling real-time monitoring of refuelling equipment, operational efficiency, regulatory compliance and economic performance across CNG and EV stations nationwide.
Speaking on the significance of the agreement, Ahmed described the partnership as a major milestone in the Federal Government’s clean energy drive, noting that its impact would go beyond infrastructure development.
“This partnership is a significant step forward in ensuring that Nigerians benefit not only from cleaner and more affordable transport energy, but also from job creation, skills transfer and improved service reliability,” he said.
“By localising manufacturing and deploying smart monitoring technologies, we are strengthening transparency, safety and efficiency across the CNG and EV refuelling value chain, ultimately delivering better outcomes for commuters, operators and the broader economy.”
As part of the China engagement, the Pi-CNG delegation also visited the factory of Sichuan Witent Technology Co. Ltd, a manufacturer of CNG conversion kits.
Discussions during the visit focused on potential investments in local assembly plants and the establishment of full manufacturing lines in Nigeria to meet the growing demand for vehicle conversions and further strengthen local participation in the gas-to-transport value chain.
Pi-CNG stated that the engagements underscore the Federal Government’s strategic and results-driven approach to international partnerships, technology transfer and domestic capacity building.
The initiative reaffirmed its commitment to expanding access to cleaner and more affordable alternative fuels, while supporting Nigeria’s transition to a more resilient, inclusive and sustainable transport energy system.
The Presidential Initiative on Compressed Natural Gas (Pi-CNG) was established by the Federal Government to fast-track the adoption of CNG and electric vehicles as cleaner and more cost-effective alternatives to petrol and diesel, particularly for public transport systems and commercial fleets.
The initiative forms part of the government’s broader energy transition and cost-of-living response, aimed at lowering fuel costs, reducing emissions, expanding domestic gas utilisation and creating employment through local manufacturing, technology transfer and increased private sector investment.
The NNPC Limited has concluded plans to sell stakes in some of its oil and gas assets and has invited bids from interested parties. The general secretary of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Jerry Amah, confirmed the development to Reuters.
According to Reuters, the company announced the call for bids through an invitation document, requesting prospective bidders to register online by January 10, 2026. The agency, which noted that a pre-screening process will be conducted, and qualified companies will be granted access to a secure virtual data room, stated: “Prequalification will be based on technical and financial capacity, followed by document evaluation, negotiations and regulatory approvals.”
The agency noted further that although NNPC owns some assets outright and others in partnership with international oil companies, including Shell, Chevron, and Eni, the document did not disclose how much it aims to raise.
Earlier, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) alleged the federal government plans to sell off significant stakes in joint venture (JV) assets managed by the NNPC.
It stated: “The government is wanting to reduce its stake in these assets, principally, they want to sell some huge percentages in these assets. In some places, sell up 35 percent, in some places sell up 30 percent, so that they will have some cash to spend in other areas. That is the excuse that they are giving.”
Speaking after briefing President Bola Tinubu in Lagos, Ojulari described the current tension as a necessary transition from decades of fuel import dependence to a domestically driven, competitive refining market.
Competition pushes petrol prices down
Ojulari said the sharp fall in petrol prices reflects how deregulation and competition work in practice, stressing that consumers always benefit when multiple suppliers compete for market share.
Petrol prices, which exceeded ₦1,200 per litre in late 2024, have dropped to as low as ₦739 per litre in December 2025, driven largely by competition between Dangote Refinery, NNPCL retail outlets and independent marketers.
According to the National Bureau of Statistics, the average retail price of Premium Motor Spirit declined by ₦153 per litre year-on-year, supported by improved supply and domestic refining capacity. Dangote Refinery alone implemented over 20 price adjustments in 2025, forcing other operators to respond or lose customers.
Ojulari noted that while the price war has created pressure for marketers, it signals a healthier and more transparent market structure.
PIA redefines NNPCL’s commercial role
Ojulari clarified that under the Petroleum Industry Act (PIA), NNPCL no longer regulates fuel prices or the downstream market. Instead, the law separates regulation from commercial activity, placing oversight under the NMDPRA and NUPRC.
NNPCL is now a fully commercial company that must compete, raise financing independently and operate profitably like any other energy business.
He emphasised that NNPCL no longer receives federation allocations and now functions as a market participant rather than a price setter. This shift, he said, explains the intense competition currently playing out across the downstream sector.
Despite the turbulence, Ojulari said NNPCL continues to act as the supplier of last resort, working closely with all stakeholders, including Dangote Refinery, to ensure nationwide fuel availability.
Local refining strengthens energy security
Ojulari acknowledged that the entry of large-scale domestic refineries has temporarily disrupted market equilibrium but insisted the long-term benefits outweigh the short-term pain.
Before Dangote Refinery began petrol production in 2024, Nigeria relied almost entirely on imports, even as Africa’s largest crude oil producer. The removal of fuel subsidies in 2023 exposed these structural weaknesses, pushing pump prices above ₦1,000 per litre and worsening inflation.
Ojulari disclosed that crude oil production has risen from 1.5 million barrels per day in 2024 to over 1.7 million barrels per day in 2025, while gas output has increased to more than 7 billion standard cubic feet per day. NNPCL now targets 1.8 million barrels per day in 2026, supporting President Tinubu’s broader production and investment goals.
He also confirmed progress on the Ajaokuta–Kaduna–Kano gas pipeline, which is expected to drive industrial growth and power generation when commissioned in early 2026.
As Nigeria’s fuel market adjusts, Ojulari maintained that competition, though uncomfortable, is necessary.
“At the end of the day, Nigerians on the street will be the real beneficiaries.”
LAGOS – Wale Tinubu,Group Chief Executive, Oando Plc, has been awarded the prestigious Lifetime Achievement Award at African Energy Week (AEW) 2025, in recognition of his unwavering commitment to building Oando into one of Africa’s foremost integrated energy companies.
Conferring the award, the African Energy Chamber cited Tinubu’s dedication to advancing Africa’s energy security, his Abold leadership in navigating Oando through periods of uncertainty and transformation, and his pivotal role in demonstrating the power of indigenous companies in driving industrial growth and energy sovereignty across the continent.
Tinubu has been a steadfast champion of Africa, charting its own destiny by harnessing its abundant resources for the benefit of its people. A firm believer that anyone can achieve greatness with vision, determination, and the right team around them, he has led Oando from its modest beginnings as a local downstream operator into a multinational integrated energy player with a robust portfolio spanning exploration and production, power, and renewables.
His leadership has not only positioned Oando as a continental leader but also symbolized African ambition, ingenuity, and resilience.
The Lifetime Achievement Award is widely regarded as a benchmark of excellence at AEW, reserved for leaders whose contributions have left an indelible mark on Africa’s energy sector.
The global oil market has once again been thrust into turmoil, this time by the escalating conflict between Israel and Iran. As tensions flare in the Middle East—a region central to global energy supply—oil prices have become increasingly volatile, swinging in response to fears of disruption. On Tuesday, June 17, five days after the new hostilities, oil prices were driven even higher with Brent and WTI up more than 2 percent.
Equity markets were also initially roiled after the surprise strike but have since stabilised.
As the deadly salvo entered the fifth day, there were growing concerns that the conflict would spread across other world’s key oil-and-gas-producing regions, including oil-dependent nations like Nigeria. The latest outbreak is a critical addition to the floundering global economy that is teetering on the cusp of a global recession.
Nigeria relies on crude oil for the majority of its foreign exchange earnings and a substantial portion of government revenue. While a spike in oil prices might seem beneficial on the surface, it often comes with a double-edged sword, portending a combination of risks and upsides for the economy. Higher prices can boost revenue, but they also inflate the cost of petrol subsidies—already a major fiscal burden—and disrupt budget assumptions based on stable benchmarks.
Surging oil prices offer a temporary fiscal cushion, but for Nigeria, the real battle is at home—against inflation, currency devaluation, and shaky investor confidence. Can the country withstand another global storm without slipping deeper into crisis?
A decade-old conflict between Israel and Iran that was never quite gone “cold” rapidly heated up again on the morning of Friday, June 13, when Israel launched fusillades of air strikes on Iran in what its leader claimed were “pre-emptive” measures to prevent Iran from building nuclear armament, but many countries consider the strike as unprovoked and unpremeditated, as talks were still ongoing between Iran and the US over Iran’s JCPOA nuclear programme deal, which Iran says is for peaceful means. In the days after the first attack against the Iranian nuclear programme and military leadership, more than two hundred people have been killed in Iran and at least two dozen in Israel, with over 17 million residents of Tehran in flight mode.
Of course, many of the initial impacts were predictable: oil prices soared, stock prices plunged, and bonds rallied as investors sought safety amidst the market turbulence and uncertainty. However, the longer-term effects are less easily anticipated, given that they depend on the extent to which the conflict escalates.
Economies around the world are currently grappling with elevated geopolitical tension triggered by the Russian-Ukrainian war and the Israel-Hamas conflict. There is also the profound uncertainty created by the unprecedented tariff disruptions by the Trump administration, together with the escalating hostilities. Brent crude has been pushed toward $73–74/barrel, up roughly 0.5 percent, with intraday jumps over 2 percent. The latest spike followed a similar trend of oil price shocks triggered by key geopolitical flashpoints, including leadership assassinations and military escalations. Each event, from Iran’s missile response in April 2024 to the toppling of Syria’s President in December 2024, has added volatility, fuelling investor anxiety.
Oil price volatility has now rippled into currency and inflation pressures across oil-importing economies—including Nigeria.
Rising oil prices bolster the U.S. dollar, increasing demand for safe-haven currencies. For Nigeria, this translates into naira weakness: the official rate hovers near ₦1,543/USD, while the parallel market remains around ₦1,550–₦1,600/USD. A weaker naira inflates the cost of imports, feeding domestic inflation, already near 23 percent. To curb the outflow of foreign exchange and stabilise the currency, the Central Bank of Nigeria has leaned heavily on intervention and tight monetary policy. Rates remain near 27.5 percent, following multiple hikes totalling over 875 basis points since 2024.
The combined effect: an elevated cost of living, elevated borrowing costs, and tighter budgetary space. As geopolitical uncertainty persists, Nigeria’s currency and inflation outlook remain at risk, requiring vigilant policy response to prevent imported inflation from undermining economic resilience.
The unfolding Israel–Iran conflict has rattled investor sentiment, with implications for Nigeria’s capital flows. According to SBM Intelligence, escalating hostilities have triggered “risk-averse sentiment in global markets”, endangering Nigeria’s ability to attract foreign direct investment (FDI) and portfolio inflows. The ripple effects include stalled infrastructure projects, slower job creation, and increased sovereign borrowing costs due to heightened country risk premiums.
According to oilprice.com, Nigeria’s crude oil prices have climbed in the five days of the war—Bonny Light nearing $80/barrel (traded at $78.62 on Tuesday), with Brass River and Qua Iboe fetching ~$76, surpassing the government’s $75 budget benchmark. While this temporarily boosts FX inflows and reserves, reliance on locked-in contracts means windfalls are inconsistent. More critically, geopolitical uncertainty raises borrowing costs and undermines FDI inflows even amid higher revenues.
The Centre for the Promotion of Private Enterprise (CPPE) warns that elevated energy prices and global tensions may trigger imported inflation and “shaken investor confidence”, potentially curtailing portfolio flows. Firms with Middle East ties face supply chain disruptions, while financiers reassess risk exposure.
In sum, despite transient oil-price gains, long-term investor confidence in Nigeria is under strain. Policymakers must urgently reinforce fiscal stability, reassure foreign investors, and mitigate capital flow volatility to safeguard economic resilience.
Looking ahead: Policy response and economic resilience
In this moment of global uncertainty, Nigeria faces a delicate balancing act. The government must navigate rising oil income without losing grip on inflation, public spending, or exchange rate pressures.
While the recent oil price rally provides Nigeria with some fiscal breathing space, the country’s long-term economic resilience hinges on how effectively it manages the inflationary fallout and rising geopolitical risks. Experts emphasise that improving domestic refining capacity, increasing oil production, and deploying proactive monetary measures are key to mitigating external shocks.
The anticipated nationwide distribution of petrol by the Dangote Refinery in August 2025 offers a potential buffer against imported inflation and forex strain from fuel imports. However, until then, Nigeria remains highly vulnerable to the ripple effects of the Israel-Iran conflict and global energy market instability.
Ultimately, Nigeria stands at a pivotal crossroads: strategic policy coordination, fiscal discipline, and timely economic reforms are essential not just to navigate the current crisis but to convert global volatility into an opportunity for sustainable growth. This moment demands bold leadership and a clear-eyed commitment to long-term macroeconomic stability.
The Dangote oil refinery in Nigeria, Africa’s largest crude processing facility, is set to ship its first gasoline cargo out of the African region with a vessel heading for Asia, a source with knowledge of the plans told Reuters on Wednesday.
The cargo of 90,000 metric tons of gasoline is set to be loaded by independent oil trader Mercuria this coming weekend, according to the source.
The Dangote refinery, which began operations last year, has so far exported gasoline only to the West African region.
“We sell our products to those who are willing to give us the highest price. It’s the buyer’s right to take the products to any destination of their choice,” a spokesperson for the Dangote refinery told Reuters.
The 650,000-barrels-per-day refinery has been buying increasing volumes of U.S. crude WTI in recent months, for both logistical and technical reasons.
WTI offers higher yields of reformate and has better gasoline blending capabilities, Randy Hurburun, senior refinery analyst at Energy Aspects, told Bloomberg earlier this month.
Dangote began fuel production in 2024. The refinery started up in January last year with the launch of diesel and naphtha production and began producing gasoline in September.
The refinery, built by Africa’s richest person, Aliko Dangote, has a total processing capacity of 650,000 bpd, which makes it Africa’s biggest and one of the world’s largest crude processing sites.
The refinery is expected to meet 100% of Nigeria’s demand for all refined petroleum products and will also have a surplus of each of the products for export.
Dangote will also export polypropylene to the global markets under an exclusive partnership with petrochemicals distributor Vinmar International.
“This collaboration marks an important step in expanding the reach of high-quality polypropylene produced at Dangote’s new refinery and petrochemical complex in Lekki, Nigeria,” Vinmar International said.
The Nigerian Upstream Petroleum Regulatory Commission has directed exploration and production companies to strictly adhere to the Crude Oil Supply Obligations for local refineries.
The commission also warned that it would deny export permits for crude oil cargoes intended for domestic refining if oil companies fail to meet their local crude supply commitments.
In a circular issued by its Public Affairs Unit on Monday, the regulatory body stressed that any changes to cargoes designated for domestic refining must receive express approval from the Commission’s Chief Executive.
This directive follows complaints from local refiners, including the Dangote Refinery, over difficulties in securing adequate crude supplies, raising concerns about Nigeria’s energy self-sufficiency.
According to NUPRC data, the Dangote Refinery is expected to process 550,000 barrels per day and 17.05 million barrels per month in the first half of the year.
However, sources at the refinery claim the government has not met this demand, with suppliers requesting partial payment in US dollars.
In a letter dated February 2, 2025, addressed to exploration and production companies and their equity partners, the Commission Chief Executive, Gbenga Komolafe, reiterated that diverting crude oil meant for local refineries violates the law.
Citing Section 109 of the Petroleum Industry Act 2021, which ensures a stable supply of crude oil to domestic refineries and strengthens national energy security, Komolafe stated that NUPRC will now strictly enforce the policy and penalise defaulters.
He noted that the commission has already taken significant regulatory actions to enforce compliance with the Domestic Crude Supply Obligation. These include developing and signing the Production Curtailment and Domestic Crude Oil Supply Obligation Regulation 2023, as well as creating the DCSO framework and procedure guide for implementation.
“Kindly note that the diversion of crude cargo designated for domestic refineries is a violation of the law, and the Commission will henceforth disallow export permits for such cargoes.
“All cargoes designated for domestic refining can only be altered with the express approval of the Commission Chief Executive. The above is for your strict compliance,” the letter read.
Our correspondent gathered that, as part of efforts to resolve the issue, a stakeholder meeting attended by more than 50 key industry players was held last weekend.
At the meeting, both refiners and producers blamed each other for inconsistencies in implementing the Domestic Crude Supply Obligation policy.
Refiners claimed that producers were failing to meet supply terms and instead preferred to sell crude abroad, forcing them to seek alternative sources of feedstock. Conversely, producers argued that refiners rarely met commercial and operational terms, compelling them to explore other markets to avoid operational bottlenecks.
However, both sides acknowledged that the regulator has implemented appropriate measures to ensure compliance.
The commission cautioned against further breaches from either party.
It advised refiners to adhere to international best practices in procurement and operational matters and reminded producers that any variation of the DCSO policy conditions requires express approval from the CCE before selling crude outside the agreed framework. This, it said, is to prevent abuse.
The CCE warned that it would no longer tolerate violations of domestic crude supply regulations, stressing that non-compliance threatens Nigeria’s energy security.
In a strategic move aimed at bolstering Nigeria’s energy landscape, the Nigerian National Petroleum Company Limited (NNPC) has announced several high-profile appointments, enhancing both upstream and downstream operations. In a statement released on Wednesday night by Chief Corporate Communications Officer, Olufemi Soneye, the Board of Directors highlighted these changes as crucial steps toward reinforcing operational excellence, financial sustainability, and global competitiveness within the organization.
Key Appointments in NNPC Leadership
These appointments mark a new era for NNPC, aligning with its mission to establish a unified and skilled leadership team. Among the key announcements are the following:
Mr. Adedapo A. Segun assumes the role of Chief Financial Officer (CFO) following a distinguished tenure as the Executive Vice President, Downstream. Segun’s financial acumen and strategic insight are expected to drive NNPC’s financial operations towards heightened efficiency and robust fiscal management.
Mr. Isiyaku Abdullahi has been promoted to Executive Vice President (EVP), Downstream. Abdullahi brings a wealth of experience and a proven track record within NNPC, set to enhance downstream operations and strengthen partnerships in refining, distribution, and commercial activities.
Mr. Udobong Ntia steps into the role of Executive Vice President (EVP), Upstream, where his expertise will be pivotal in overseeing upstream exploration and production activities. Ntia’s focus will be on driving exploration efficiency and maximizing Nigeria’s petroleum reserves to align with the country’s energy security objectives.
Soneye emphasized, “These appointments align with NNPC Limited’s commitment to building a unified and competent leadership team to drive operational excellence and support the organization’s strategic objectives.”
Recognizing the Service of Outgoing Executives
In addition to these appointments, the Board expressed its gratitude to Mr. Umar Ajiya and Mrs. Oritsemeyiwa A. Eyesan for their significant contributions and dedication to NNPC’s mission. Their leadership and commitment to the growth of Nigeria’s energy sector have left a lasting impact, furthering NNPC’s legacy as a national petroleum giant.
A Renewed Vision for Operational Excellence and Global Competitiveness
NNPC remains steadfast in its pursuit of operational excellence, a goal which these appointments are set to strengthen. Under its new leadership, NNPC aims to enhance financial sustainability and ensure that it remains globally competitive, meeting the evolving demands of the oil and gas industry. In addition, NNPC continues to prioritize the interests of the Nigerian public, placing transparency and accountability at the forefront of its operations.
As Nigeria continues to adapt to an evolving energy market, these leadership changes underscore NNPC’s dedication to driving long-term value in the petroleum sector, not only for the organization but for the nation as a whole.
