The President Tinubu-led Federal Government held a crucial meeting with refinery owners on Wednesday to discuss concerns over the inadequate supply of crude oil for local refiners.
To enhance refining capacity, the government emphasised the necessity of meeting local crude demand. They also emphasised the readiness of the 650,000 barrels per day Dangote refinery, which depends on a consistent supply of crude.
Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), an organisation under the Federal Government, disclosed these facts at the meeting with domestic refinery owners in Abuja.
“Good enough, we have Africa’s largest refinery, the Dangote refinery. It is now operational.
“We’ve received a request from the refinery to guarantee feedstock to the 650,000 barrels refinery, and we believe that as a nation, it will be a shame if we cannot meet the feedstock of the refinery.”
The major goal of the meeting was to work together to address the feedstock demands of domestic refineries and to make Nigeria a net exporter of refined petroleum products. The country is now a net exporter of unrefined crude oil.
Komolafe further said that the NUPRC had contacted crude oil companies, requesting information on the volumes of committed and uncommitted crude oil in various locations.
Nonetheless, several manufacturers have failed to comply with this rule. The information obtained will help the commission determine whether the non-committed quantities can currently meet the requirements for domestic feedstock.
Domestic crude oil refining would boost the pricing of refined petroleum products, according to Komolafe, thereby reducing the financial burden of fuel subsidies.
Despite having significant crude oil reserves, Nigeria has been a net importer of refined goods.