The Nigerian National Petroleum Company Limited (NNPCL) has expressed disappointment over the shortfall in petroleum product supply from the Dangote Refinery.
Instead of the anticipated 1.065 billion litres, the refinery delivered only 317 million litres, raising concerns about fuel availability and the refinery’s production capacity.
A document from the state oil company revealed that the refinery has struggled to meet its supply requests.
According to this document, the NNPCL requested 1.065 billion litres between September 15 and October 20. However, the Dangote Refinery supplied only 317 million liters. The document, titled “Summary of Volume Loading,” indicated that in September, the refinery provided 103 million litres, which accounted for 26 percent of the requested volume. In October, it supplied 214 million litres, or 32 percent of the expected amount.
The refinery began petrol production on September 15, with NNPCL as the sole off-taker. Since the implementation of a policy on crude sales in naira to local refineries initiated by the Federal Government, other marketers have been allowed to purchase directly from the refinery, which can process 650,000 litres per day.
At the launch of petrol distribution, the NNPCL claimed it purchased the product at N898 per liter from the refinery. However, the Dangote Refinery contradicted this, not disclosing the sale price. In an updated statement this month, the NNPCL claimed it bought the product at N977, which was also disputed.
In other news, Dangote Refinery announced that it does not have any new court cases against the NNPCL or other stakeholders. The company stated, through its Group Chief Branding and Communications Officer, Anthony Chiejina, that it intends to withdraw its pending case at the next adjournment in January.
“This is an ongoing issue that began in June and culminated in a matter filed on September 6, 2024,” he explained.
According to Chiejina, discussions are currently underway following a presidential directive regarding the naira-for-crude initiative. In part, the statement reads, “We have made significant progress, and recent events have overshadowed this development. No party has been served with court documents, nor do we intend to do so. We have agreed to suspend the proceedings.”
He emphasized that no orders have been issued and there are no adverse effects on any party involved. “Once the matter comes up in January 2025, we will be in a position to formally withdraw it from court.”
In its legal petition, Dangote requested that the Federal High Court in Abuja void all licenses recently issued for the importation of petroleum products. The company is also seeking 100 billion naira in damages from the NMDPRA for granting import licenses to NNPCL, Matrix Petroleum Services Limited, and others for petroleum products such as Automotive Gas Oil (AGO) and Jet Fuel, despite the fact that its own production of AGO and Jet-A1 exceeds the current daily consumption in Nigeria.
Dangote argues that these licenses issued to NNPCL and others violate the Petroleum Industry Act (PIA). The company claims its investments are at risk and seeks court intervention to declare that the NMDPRA has violated its statutory responsibilities under the PIA by not promoting local refineries and instead issuing licenses for the importation of petroleum products.
In a supporting affidavit, Dangote stated that such licenses should only be granted when there is a shortfall of petroleum products.
