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The government said companies which violate the law could be fined as much as $10,000 and have their export licences withdrawn.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

Fixed Income: CBN Announces Fresh Regulations To Control Nigerian Market

Published

3 days ago

October 3, 2025

Editor

The Central Bank of Nigeria has announced sweeping regulations to take control of the Nigerian fixed income market.

The regulations expected to begin in November are aimed at boosting transparency across Nigeria’s financial sector.
The apex bank disclosed this in a recent statement.

CBN noted that the intervention is a key part of broader financial market reforms.

Accordingly, it said its core objective is to enhance regulatory oversight and strengthen the market’s ability to effectively support the transmission of monetary policy and, ultimately, foster economic growth.

“This transition will enable the CBN to assume direct responsibility for the management of the trading platform and handle end-to-end settlement activities under the bank’s established settlement system for financial market transactions,” the statement read.

According to DAILY POST, Fixed income securities refer to investments which provide a return in the form of fixed periodic interest payments and the eventual return of the principal at maturity.

Business

Confusion Over Euro-Africa CCI’s $250m Investment In Edo

Published

7 days ago

September 29, 2025

Editor

The $250m investment deal Governor Monday Okpebholo claimed to have secured during his recent trip to Scotland is generating ripples over capacity of the European African Chamber of Commerce and Industry (EACCI) to make such a huge investment.

The EACCI, headed by a Drector General, Dr. Kingsley Obasohan, is not known to have made any prior investment in Edo State or any part of the country.

Obasohan, who attended the Edo State Global Investment Summit virtually, announced the $250m investment.

He said the investment would be made for a period of three years.

An online search was launched to unravel the EACCI as well as the man Obasohan.

A number on the site was answered by a lady who claimed not to understand English language.

Several foreign partners were listed on the site as board members and advisory council.

Some closed associates of Obasohan said he would have to get clearance from the Board members before talking to journalists on the issue.

Spokesman for the Edo Peoples Democratic Party, Daniel Noah Osa-Ogbegi, said the party would hold Governor Okpebholo accountable to Edo people and demanded clarity on the $250m investment from Glasgow.

Osa-Ogbegi said the proposed investment has become a source of embarrassment to Edo people because of unfolding information about EACCI.

He said the party would shine light on fiscal management practices that appeared to ignore transparency and responsibility.

Secretary to the State Government (SSG), Umar Musa Ikhilo, had earlier said those that attended the Glasgow summit were interested in keying into the SHINE agenda of Governor Okpebholo.

“One of the chambers of commerce that attended, the European African Chamber of Commerce and Industry signed an MoU with the Edo State Government to invest a sum of $250 million over the next three to five years.

“Last year, diaspora remittances were the second-highest source of foreign income in Nigeria after crude oil, over $20 billion, but only 2% of that went into investment. We are creating a vehicle to help convert more of that into direct investments.”

He added that a delegation from Scotland was expected to visit Edo State in the coming months to explore specific investment projects as a follow-up to the summit.

Business

Dangote Hits Out At PENGASSAN, Says Union ‘Serial Saboteurs, Serving Oligarchs’

Published

1 week ago

September 28, 2025

Editor

The management of Dangote Petroleum Refinery has berated the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), accusing the union of decades-long sabotage of Nigeria’s oil and gas sector and serving the interests of its leaders rather than ordinary Nigerians.

In a statement issued at the weekend, the refinery described PENGASSAN’s latest directive to cut crude oil and gas supplies to the facility as another act of economic sabotage designed to inflict untold hardship on Nigerians.

“Indeed, over time, the Association has consistently proved itself as serving interests other than those of Nigerians and Nigerian workers,” the statement declared.

Dangote recalled that in 2007, when the Federal Government sold its moribund Port Harcourt and Kaduna refineries to Blue Star Consortium, led by the Dangote Group, for $750 million, it was PENGASSAN and its ally, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), that sabotaged the deal. “It is now obvious to everyone that the FGN’s decision at the time was the right one and that PENGASSAN and NUPENG ignominiously wrote their names on the wrong pages of history,” the company said.

The refinery also faulted the union’s role in the much-publicised rehabilitation of the Port Harcourt Refinery, describing it as a “ruse” which PENGASSAN “knowingly celebrated despite being a scam on Nigerians.” The statement further accused the union of opposing amendments to the Petroleum Industry Act (PIA) that would have freed up federal liquidity and attracted private-sector funding into Nigeria’s upstream oil ventures.

Beyond policy obstruction, Dangote Refinery accused the association of mismanaging billions of naira in annual check-off dues to allegedly bankroll the “lavish lifestyles” of its leaders, without accountability to members. By contrast, the refinery highlighted its own record of economic contributions within a short period, citing road construction, worker training, the creation of thousands of Nigerian jobs, and a compensation structure that “outdistances the best in the Nigerian oil and gas industry.”

“The Dangote Group is the highest employer of labor in Nigeria and the highest contributor to the tax revenues of Nigeria and its sub-nationals. What comparable social responsibility has PENGASSAN, with its billions of Naira in annual check-off dues and subscriptions, lived up to?” the statement queried, challenging the union to publish its audited accounts for the past ten years. “Can it publish publicly its account for the last 10 years and list out its corporate responsibility activities within that timeframe?”

The refinery insisted that PENGASSAN’s recent directive to withdraw services and cut off essential fuel supplies, including but not limited to petrol, diesel, kerosene, cooking gas and aviation fuel was reckless, lawless and dangerous. It said the order is not about protecting Nigerian workers, but it is about a cabal of oligarchs weaponising hardship against over 230 million Nigerians.

“In the process, it (PENGASSAN) cares little if at all about the unbearable hardship and terror it would thereby inflict on all Nigerians, including but not limited to the provision of essential services in our hospitals and medical facilities, schools (nursery and right up to tertiary and research institutions), emergency services, communications facilities, transportation systems, etc,” it said.

Dangote Refinery called on the Federal Government and security agencies to step in immediately to protect the facility and the nation’s energy security, stressing that the union must not be allowed to “bully Nigerians into chaos and economic sabotage.”

According to Tribune Online, the federal government has announced readiness to broker peace between Dangote Refinery and PENGASSAN, inviting both to a meeting scheduled for Monday.