Crude Oil Supply: TUC Reveals Cause Of Rift Between NNPC, Dangote Refinery

The Trade Union Congress (TUC) has revealed that Aliko Dangote’s 650,000 barrels-per-day refinery is struggling to secure crude oil supply from the Nigerian National Petroleum Company Limited (NNPCL) and international oil companies (IOCs) due to inadequate planning.

TUC President, Comrade Festus Osifo, made this known during a media briefing in Lagos, where he discussed the growing tensions between Dangote and the NNPCL.

According to Osifo, Dangote’s failure to initiate negotiations for crude supply well in advance of the refinery’s completion has resulted in complications now that the facility is ready for operation.

He pointed out that such discussions should have been initiated at least five years before the refinery’s expected launch, rather than six months prior to its opening.

Osifo’s comments follow a recent interview in which Dangote expressed frustration, comparing the Nigerian oil and gas industry to a “drug cartel” in an interview with Bloomberg.

However, Osifo countered this, explaining that the industry is highly regulated, with crude oil production and distribution managed by several IOCs under long-standing contracts with the Nigerian government.
|SituationReport|