Nigeria’s ambitious strategy to price crude oil in naira for local refineries has encountered significant setbacks just two months after its rollout. Spearheaded by the Nigerian National Petroleum Company (NNPC), the plan’s goal was to stabilize the country's dollar reserves while ensuring sufficient crude supply for domestic refining.

But the initiative appears to be faltering. Major players like Dangote Oil Refinery are receiving only a fraction of what it was promised.
According to Edwin Devakumar, the Dangote refinery's executive director, NNPC committed to delivering 385,000 barrels per day (bpd) to the 650,000-bpd facility but has failed to meet even this reduced quota. Describing deliveries as “peanuts,” Devakumar highlighted the challenges of relying on inconsistent domestic supply chains. Meanwhile, other refineries under the Crude Oil Refinery-owners Association of Nigeria (CORAN) report being entirely excluded from the naira-based crude program, citing ongoing negotiations with the government for resolution.

This supply crunch has forced Dangote to turn to international markets, recently purchasing 2 million barrels of U.S. WTI Midland crude. This may highlight the refinery’s global competitiveness, but it also exposes the inadequacy of Nigeria’s domestic crude allocation system.

NNPC has faced criticism for its inability to tackle a long history of chronic oil theft and pipeline vandalism. It now faces new criticism—for failing to prioritize local refining needs. Efforts to enforce domestic supply rules through the Nigerian Upstream Petroleum Regulatory Commission have so far proven ineffective.

As Nigeria’s largest refinery edges toward its year-end goal of 85% operational capacity, its struggles are emblematic of broader systemic issues in the country’s energy sector. Without reliable crude supply, the vision of a self-sufficient refining industry—anchored by the Dangote refinery—risks being another unrealized ambition in Nigeria’s complex oil landscape.

By Julianne Geiger for Oilprice.com


https://oilprice.com/Latest-Energy-News/World-News/Nigerias-Local-Currency-Crude-Oil-Plan-Hits-Roadblocks.html

The port harcourt refinery's re-revitalisation cum production commencement is an arrangee to make the gullible minds believe that the 2bn usd spent by the buhari-led administration had been judiciously spent. Soon, same story wouid be coming out from the sector. They'd say vandalism and shortage of crude supply are the reasons the refinery isn't producing to capacity or not in operation. They'd now shut down the facility.

Let me remind their gullible supporters, the ideas of the TAM was to make those refineries sellable to potential investors and not to commence production for local supply so, who's deceiving who? Had they deviated from that arrangement already? Did the public know anything about it? Why did they say TAM had failed and suddenly,production was being announced?Do these people think they're smart? Time will tell.

Dangote has now jettisoned their supply arrangement and headed for the international market. When I said the naira for crude arrangement was aimed at frustrating dangote, a lot of people here doubted it.

Who remembers the Hadi Sirika's Nigeria Air arrangee with the Ethiopian airlines' ? We hope this wouldn't end up same way. I've always been vindicated on my predictions about these guys' heinous activities aimed at impoverishing the poor. Any doubting Thomas should 📌 📌 this comment for future references.

Eriokanmi:
Nigeria’s ambitious strategy to price crude oil in naira for local refineries has encountered significant setbacks just two months after its rollout. Spearheaded by the Nigerian National Petroleum Company (NNPC), the plan’s goal was to stabilize the country's dollar reserves while ensuring sufficient crude supply for domestic refining.

But the initiative appears to be faltering. Major players like Dangote Oil Refinery are receiving only a fraction of what it was promised.
According to Edwin Devakumar, the Dangote refinery's executive director, NNPC committed to delivering 385,000 barrels per day (bpd) to the 650,000-bpd facility but has failed to meet even this reduced quota. Describing deliveries as “peanuts,” Devakumar highlighted the challenges of relying on inconsistent domestic supply chains. Meanwhile, other refineries under the Crude Oil Refinery-owners Association of Nigeria (CORAN) report being entirely excluded from the naira-based crude program, citing ongoing negotiations with the government for resolution.

This supply crunch has forced Dangote to turn to international markets, recently purchasing 2 million barrels of U.S. WTI Midland crude. This may highlight the refinery’s global competitiveness, but it also exposes the inadequacy of Nigeria’s domestic crude allocation system.

NNPC has faced criticism for its inability to tackle a long history of chronic oil theft and pipeline vandalism. It now faces new criticism—for failing to prioritize local refining needs. Efforts to enforce domestic supply rules through the Nigerian Upstream Petroleum Regulatory Commission have so far proven ineffective.

As Nigeria’s largest refinery edges toward its year-end goal of 85% operational capacity, its struggles are emblematic of broader systemic issues in the country’s energy sector. Without reliable crude supply, the vision of a self-sufficient refining industry—anchored by the Dangote refinery—risks being another unrealized ambition in Nigeria’s complex oil landscape.

By Julianne Geiger for Oilprice.com


https://oilprice.com/Latest-Energy-News/World-News/Nigerias-Local-Currency-Crude-Oil-Plan-Hits-Roadblocks.html

Why will crude be enough for dangote to refine when they are using cruise ships to steal crude oil from the Niger Delta creeks and use Navy convoy to escort it away from our waterways?

Steal the nation's natural resources to depletion, refine it poorly in Malta, then bring it back to the country for sales to the common man.

Nigeria's traditional ruler chiefs, military top cakes, top business men, local government politicians use militants and foreign contacts to do this.

That's why there's no enough crude for dangote.