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According to Bloomberg News, all oil firms in the country will be obliged to provide crude for domestic refiners that can’t independently source supplies locally. Producers are only entitled to export crude after meeting their domestic supply obligations, according to the Nigerian Upstream Regulatory Commission’s measures, which may see the new, giant Dangote Refinery getting more of its crude locally.
Nigeria relies heavily on imports to meet the population’s energy needs. Analysts say refining crude oil locally could reverse this trend.However, oil and gas analyst Toyin Akinosho said he had concerns.
April 19, 2024
Nigeria to pressure oil firms in the country to sell crude to domestic refineries
The Nigeria’s petroleum regulatory commission announced new rules that will pressure oil producers in the country to sell crude to domestic refineries in a bid to reverse the country’s reliance on imported refined products.
Dangote refinery has recently been importing US crude after getting its initial supplies from the Nigerian National Petroleum Development Co. Ltd.
- “In principle, I do not have a problem with it, but we need to be very careful about the foreign exchange implications and also the volumes that are going out,” he said. “My challenge has always been, if you are overzealous about certain regulations, you can burn your fingers. In an era of very low forex [currency trading] and this being the major avenue for inflow into the country, you have to find a way of managing it.”
