Regulator gives fresh order as Dangote Refinery is set to resume sale of fuel

The Dangote refinery and other regional crude oil refining facilities in Nigeria, according to the Nigerian Upstream Petroleum Regulatory Commission, have been complaining about a shortage of feedstock.

As a result, the NUPRC Chief Executive, Gbenga Komolafe, has instructed the commission's enforcement committee to create a model for smoothly executing the Domestic Crude Oil Supply Obligation.

Komolafe issued the order during a meeting to review the DCSO as stated in Section 109(2) of the Petroleum Industry Act 2021.

According to a statement released on Wednesday, this aims to address matters about the regulation and enforcement of the crude supply.

The statement read: “Komolafe stressed the importance of prioritising feedstock supply to local refineries and addressing complaints from oil producers and Dangote Refinery within the stipulated period.”

Significant issues in the sector

The NUPRC boss underlined the government's commitment to making Nigeria a net exporter of refined petroleum products.

He also outlined challenges like the neglect of legal provisions in contractual agreements, reluctance of some companies to allocate production to domestic refineries, changes in vessel nomination, delays in vessel arrival, and frequent changes in laycans for crude oil allocated to domestic refineries.

As the nation moves away from the fuel subsidy system, Komolafe reiterated the necessity to build a robust domestic refining capacity while urging produce

The budgetary objective of 1.78 million barrels per day for oil output in 2024 was not met during the conference, which raised concerns about the feedstock supply for local refineries—especially since several are set to come online.