Business

FG Cracks Down On Producers Over Domestic Crude Oil Supply To Refineries

Published

2 years ago

November 1, 2023

In a bid to ensure that local refineries have enough feedstock for domestic refining, the Federal Government Wednesday threatened to sanction oil companies which fail to meet their domestic crude oil supply obligations in line with the provisions of the Petroleum Industry Act, PIA.

The government said companies which violate the law could be fined as much as $10,000 and have their export licences withdrawn.

Speaking at a meeting with crude oil producers in Abuja, the Chief Executive, Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Engr. Gbenga Komolafe said it was important that the industry supply enough crude oil to local refineries on a willing buyer, willing seller basis.

Mr Komolafe noted that as the largest oil producer in Africa and 7th in OPEC, Nigeria could no longer afford to be a net importer of petroleum products.

He therefore urged the oil producers to make available the volume needed for local refining, stressing that supply to the domestic market would henceforth be given priority over export.

He pointed out that the industry’s inability to meet its domestic refining obligations has impacted negatively on the economy given the volume taken as under-recovery during the petrol subsidy regime.

He explained that “domestic crude oil supply obligation refers to the requirements imposed by the government on oil producers to allocate a certain portion of their crude oil production for domestic consumption. This is done to ensure a stable and reliable supply of crude oil for the country’s domestic needs, including refining to petroleum products.

“Section 109 of the Petroleum Industry Act introduces the domestic crude oil supply obligation to the oil industry in Nigeria in a bid to ensure crude supply to local refineries. Under section 109 subsection two of the PIA, the commission gazetted the production containment and domestic crude oil supply regulations which provides clarity of the obligations of the stakeholders”.

The CCE noted that where there are supply gaps, the Commission has the responsibility to step in by issuing a “request for quotation to oil producers requiring them to submit a quotation for the supply of crude oil to meet the shortage. Upon receiving responses from the oil producers, the Commission makes available the information to the affected refineries to facilitate contract negotiations between these stakeholders. If no resolution is reached, the commission shall impose an obligation on oil producers to supply the and notify the Authority of same.

“The volume of crude oil that oil producing companies shall dedicate to the domestic crude supply obligation shall be based on an allocation system determined by the Commission”.

He stated that the Commission would take all necessary steps that would be needed to avoid an inadequate supply of crude oil to domestic refineries.

He disclosed that the Commission shall “enforce the following penalties for violations or non-compliance to the provisions of Section 109 of the Act. A company which fails to respond to requests for quotations within a specified period is liable to pay an administrative fine of $10,000 to the Commission, that is for the period of default.

“A company which has not complied with its domestic crude supply obligation, where a willing buyer insists, shall not be granted an export permit for the lease there. A company that fails to comply with the domestic supply obligation shall incur a penalty of 50 per cent of the fiscal price for barrels not delivered.

He said the Commission has received a request from Dangote Refinery to guarantee the supply of 650,000 barrels of crude oil per day ahead of its expected coming onstream in December.
VANGUARD

Business

‘We Like Greek Gifts,’ Nigerians Blast NUPENG Over Dangote’s Fuel Price Reduction

Published

1 day ago

September 13, 2025

Editor

The decision of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) to warn Nigerians against accepting Dangote Refinery’s recent fuel price reduction has drawn heavy backlash on social media, with many citizens mocking the union and embracing what they described as “much-needed relief.”

Dangote had announced lower petrol pump prices in several states alongside a new scheme to deploy compressed natural gas (CNG) trucks directly to filling stations, a move expected to reduce logistics costs.

But NUPENG dismissed the offer as a “Greek gift,” alleging that the refinery was undermining workers’ rights, sidelining the union, and pushing drivers into a rival association.

However, netizens have lambasted the union, querying that during hard times, NUPENG has never supported the masses.

On X (formerly Twitter), Nigerians quickly turned NUPENG’s warning into a trending topic, using humour and sarcasm to lampoon the union.

Oloye Somorin Osifeso (@OloyeSomorin) wrote: “We like Greek gifts in my garage.”

Just Jude (@JustJude) asked bluntly: “Is it your deception?”

Oladele (@Oladele) quipped: “As Dangote Refinery dey offer Nigerians Greek gift, why can’t NUPENG too offer Nigerians French gift?”

Agbalaka (@Agbalaka) queried: “Can they tell Nigerians what exactly they are fighting about?”

CBN Gov Akinsola (@Akinsola) joked: “Then give us Trojan gift now 😆. Man do man. Man no go vex.”

Omobalaji (@Omobalaji) teased: “NUPENG, oya surprise us with Arabian gifts.”

Habdulakeem Bahdmus (@BahdmusHabdulakeem) added: “If Dangote is showering Nigerians with Greek gift, NUPENG can also set up a Roman gift now.”

Femi Yekinni (@FemiYekinni) steered it back to reality: “We thank them for their advice. Now, @DangoteGroup pls how do we schedule deliveries to Badagry?”

Curtis Abbi (@CurtisAbbi) slammed the union: “Nigerians will manage the Greek gift. @officialNUPENG9, what gift have you given Nigerians in your entire years of existence? NUPENG should offer Nigerians their own Somalian gift 🤣.”

Akin Adejola (@AkinAdejola) echoed the sentiment: “LOL. I can bet Nigerians don’t mind the gift. NUPENG should gift Nigerians same ‘Greek gift’ too if they have any goodwill. NUPENG is the enemy of progress in the oil & gas sector.”

Adeola Akinwande (@adeolarewaju9) criticised union leaders: “Does NUPENG remember Nigerians at hard times? They have all failed Nigerians the same way the @NLCHeadquarters has failed. They are living big on unionism and cashing out big time. Without unionism, some of their excos are nobody. They should stop the crocodile tears.”

Okunwa U. U. Azikiwe (@OkunwaUUazikiwe) argued: “Competition has created jealousy by the previous monopoly in the sale of fuel. They have lost control, and it is paining them that they are no longer in control. SMH!!!”

Solihull Abdulkareem (@SolihullAbdul) chipped in: “NUPENG or whatever, do you want the market to be monopoly? You’ve been doing what you want for many years. It’s time for change, just accept it and move forward.”

Temidayo (@Temidayo) asked: “It’s a lie. What benefits has your union provided for Nigerians? Middlemen syndrome has been room for corruption. Your association should go and buy shares in Dangote and work together to make Nigeria great.”

And LegalTech Sam Akanbi (@SamAkanbi) summed up: “Nigerians no longer want your Nigerian gift, we want the Greek gift. If you have a better offer, we’d abandon Dangote’s Greek gift and take yours. But for now, let the Greek gift go round.”

Recall that NUPENG earlier alleged that Dangote Refinery was forcing truck drivers to abandon its union for a rival group, the Direct Trucking Company Drivers Association (DTCDA).

The union also accused Dangote of undermining collective bargaining rights and violating a Memorandum of Understanding (MoU) signed under government supervision.

Dangote, however, denies the claims, insisting that union membership remains voluntary and that its delivery scheme is designed to cut costs and ease supply.

The federal government has intervened, with the Ministry of Labour and the Department of State Services mediating between both parties.

Business

Dangote Refinery Reduces Fuel Price Nationwide, Provides Update On Petrol Distribution

Published

2 days ago

September 12, 2025

Editor

Dangote Refinery has reduced its premium motor spirit retail price nationwide.

This is as it announced Monday, September 15, 2025, as the new date to begin the direct petrol distribution initiative.

The initiative, which Dangote Group had earlier announced would kick off on August 15, 2025, would see the $20 billion plant distribute petrol and diesel to consumers with its 4,000 compressed natural gas trucks at zero logistics cost.

The 650,000-barrel-per-day refinery said its new gantry price is N820 per litre, the same price announced last month.

Business

FG Gives Criteria For Opening Bank Accounts

Published

2 days ago

September 12, 2025

Editor

From January 1, 2026, all Nigerians and non-residents will be required to obtain a Tax Identification Number, Tax ID, to open or operate bank accounts.

The development followed the enactment of the Nigeria Tax Administration Act, 2025, recently signed into law by President Bola Tinubu.

Section 8(2) of the Act makes the Tax ID compulsory for banking, insurance, stock broking, and other financial services. It also extends the requirement to contracts with federal and state governments.

For non-residents, Section 6(1) mandates registration for tax purposes, requiring them to obtain a Tax ID if they supply taxable goods and services or derive income from Nigeria.

To enforce compliance, Section 7(3) empowers tax authorities to assign a Tax ID to individuals or entities who fail to register. The Act also allows for suspension or deregistration of a Tax ID if a business ceases operations temporarily or permanently, provided tax authorities are notified within 30 days.

The legislation is aimed at expanding Nigeria’s tax net and boosting revenue collection. Analysts say the policy could significantly improve tax compliance rates nationwide.

Financial institutions are expected to adjust their systems and processes ahead of the January 2026 rollout.