Business

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

Published

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The government said companies which violate the law could be fined as much as $10,000 and have their export licences withdrawn.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

Why We Sited Our Multi-Billion Naira Automobile Firm Branch in Benin – Skyewise Group CEO

Published

24 hours ago

May 4, 2026

Editor

Dr. Elvis Abuyere, Chief Executive Officer and Managing Director of Skyewise Group, an automobile firm, has explained the reason for establishing a branch of the company in Benin City, the Edo State capital, describing the ancient city as “a growing economy full of enormous potential for vibrant youth.”

He added that the company considers Edo State one of the most interesting states, noting that the decision aligns with its long-term vision.

Abuyere, who spoke in Benin on Monday while taking journalists on a tour of the new automobile facility, said:
“We started very small — from Abuja to Lagos and now Benin. It is a joy and privilege for us to have completed this amazing regional office with Skyewise Group.”

According to him, beyond the automobile business, Skyewise Group is in Benin to invest in real estate, logistics, youth empowerment, and credit management. “Aand also to lend our support to what the Edo State Government is doing, knowing the fact that there is an agenda,” he added.

The young CEO urged youths in Nigeria, particularly those in Edo State, to embrace entrepreneurship, stressing that “we believe it is the future of Africa,” especially Nigeria.

He said Nigeria stands as the giant of Africa and that its youth must take bold steps in the entrepreneurship landscape.

According to Abuyere, to ensure Edo youths actualise their entrepreneurial potential, the company has prepared soft loans to help them start businesses, adding that Skyewise Group is not limited to automobile operations.

He said: “More importantly to us is youth empowerment. We want our youth to be empowered, and this is where the Skyewise Foundation comes in.

“We believe the future of Africa is entrepreneurship, and that future lies in the hands of the young people of Nigeria. We want to empower them to stand the test of time, build something meaningful, and reduce unemployment and insecurity in our land.

“I believe we need to begin taking bold steps by refining the mindset of our young people. We need to give them a sense of belonging and direction.

“We have been addressing the liquidity gap in society by providing microloans to support businesses in our environment and in Benin City.”

When asked why he chose Benin City for the multi-billion naira automobile firm, Abuyere noted: “I think this is the first automobile showroom in Edo State where you can see a car lifted from the ground floor to the first floor and beyond.”

Business

JUST IN: Nigerian Filling Stations Reduce Fuel Price After Hike

Published

3 days ago

May 2, 2026

Editor

Nigerian filling stations reduced their Premium Motor Spirit price on Saturday, barely 24 hours after the hike.

Checks by DAILY POST showed that Ranoil, Empire Energy, and other filling stations in Abuja adjusted their petrol pumps to N1,365 and N1,375 per litre respectively, down from N1,440 per litre on Friday.

This means that petroleum marketers dropped their fuel price by N65 and N75 per litre. DAILY POST reports that the move was to attract patronage from customers.

Recall that three days ago, Nigerian filling stations had raised their petrol pump price to between N1,365 and N1,440 nationwide after Dangote Refinery and depot owners increased ex-depot prices to around N1,275 and N1,290 per litre.

According to DAILY POST, while the Nigerian National Petroleum Company Limited and MRS Bovas filling stations raised their petrol price to around N1,365 per litre, others adjusted theirs above N1,440 per litre.

However, with the latest fuel price reduction by Ranoil and Empire Energy, the majority of filling station outlets now dispense petrol between N1,365 and N1,375 per litre.

This development comes as the ripple effect of crude oil prices continues to impact Nigeria’s domestic fuel price.

Brent and West Texas Intermediate crude rose to $114 and $105 per barrel before dropping to $108 and $101 after the filing of this report.

Business

Dangote Refinery Hikes Petrol Price

Published

6 days ago

April 29, 2026

Editor

Dangote Refinery has increased the ex-depot price of petrol by N75.

The refinery announced the increase on Wednesday, hiking the the price from N1,200 to N1,275 per litre.
In the same way, coastal prices have gone up to N1,215 per litre.

This adjustment amid Brent crude trading at $114.80 per barrel marks a 3.15% increase.

DAILY POST reports that Brent crude has increased to $115 per barrel, while West Texas Intermediate rose to $103 per barrel on Wednesday.