The Independent Petroleum Producers Group (IPPG), responsible for 30% of Nigeria’s crude oil production, has cautioned against being compelled to sell crude oil to the Dangote Refinery and other local refineries.
They advocate for a willing-buyer, willing-seller framework, emphasizing that the Nigerian National Petroleum Company (NNPC) should use its allocated crude oil volumes to support domestic refiners, rather than pressuring private producers.
IPPG’s Chairman, Abdulrazak Isa, urged the NNPC to leverage its 445,000 barrels per day intervention crude volume to address the current supply shortages faced by local refineries.
He warned that any excess crude production should be reserved for export, aligning with international market practices to boost foreign exchange earnings and ensure fair treatment for producers.
Modular refinery owners also expressed concerns about being overlooked in the government’s crude sales arrangements with Dangote Refinery.
They fear that favoring Dangote could create a monopoly, urging the government to extend similar support to all refineries in Nigeria.