Business
Dangote Refinery vs NNPCL: Unfortunately, Nigeria needs both companies to thrive
It is also sad to note that the Dangote refinery has not produced any duly signed and legally enforceable agreement with any domestic crude oil supplier prior to this time and for the purpose of feedstock supply to the refinery, which is very strange for a business of that magnitude, and a highly unusual and unprofessional practice in the oil and gas industry. This is actually the crux of the matter as the oil industry apparently operates differently from the cement and other industries where Mr. Dangote has been an experienced player for decades.
By Yemie ADEOYE
THE saying that when two elephants fight, the grass suffers is being brought to light and affirmed more than any time in recent history by the ongoing tussle nay controversy between the Dangote refinery and the federal government of Nigeria as represented by the state-owned Nigeria National Petroleum Company Limited, NNPCL and the industry regulatory agency, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA.
Gracefully, the minister of petroleum resources, Mr. Bola Tinubu, who also ‘doubles’ as Nigeria’s President has waded in to offer some succor via a directive to the NNPCL to sell a percentage of Nigeria’s crude in Naira to the Dangote refinery. That was a relief according to several industry watchers even if it is seen as a short term solution to a long term situation.
Even as that seem to have calmed frayed nerves for a bit, reports and counter reports continue to hit the news, thereby keeping the issue on the front burner, even after a presidential mediation. Only recently, there has been a back and forth over the facilitation and non-delivery of 29 million barrels of crude oil to the refinery.
It goes without saying that the advent of the Dangote industries in the business of refining at the time it did, and up until this moment was and is still is, a necessity for the Nigerian economy. Even if it’s just for the dignity and pride it brings to the African continent, that alone is enough to fight or die for.
Nigeria’s Minister of State for Petroleum Resources, Heineken Lokpobiri , flanked by Alhaji Aliko Dangote, and heads of NNPCL, NUPRC, NMDPRA
This is outside other immediate economic advantages that accrues to Nigeria as a country, from mass employment to indirect domestic businesses, FDI attraction reduction in forex need and pressure amongst others. The list as they say is endless, only if our business climate is not unduly charged, cumbersome, and difficult for no logical reason.
Almost the same thing applies to the NNPCL, save for the fact that it is a public trust. This company, since inception in 1977 is now almost the single most important company in Nigeria, if only we allow it to work for the country. The issues aren’t so difficult to address, but it seems Nigeria has allowed undue politics and interference to affect the functionality of the NNPCL.
Oil, amongst a few others, is a globally priced commodity, which reacts negatively to undue and non-technical interference. This is the bane of the NNPCL debacle, and until the company, supposedly the largest oil company south of the Sahara is completely free of this interference and obstacles, thereby operating like any other International Oil Company, it will be absolutely impossible for the company to reach its full potentials for the benefit of the global oil and gas industry and the Nigerian economy specifically.
Over the decades, there has been several suggestions on the most beneficial modus operandi for the company, with many experts agreeing that the Nigeria Liquefied Natural Gas, NLNG module will best serve the oil behemoth and better position the company for international plays just like it’s supposed contemporaries, Saudi Aramco, PETROBRAS, PETRONAS, Equinor, SONANGOL and their likes.
Currently, the operational rig count in Nigeria is around 15 rigs. This is abysmally low when compared to other major oil cities or countries. The state of Texas in the USA has 278 operational rigs at work at the time of this report, while Saudi’s Aramco has 300. Algeria has the highest in Africa at 42 rig counts, while even troubled Libya has 20 operational rigs at the moment.
This should serve as a crucial area of focus for the current Nigerian government and indeed, the NNPCL, in order for the country to at least meet the traditional OPEC quota of 2.4 million barrels and enable it meet its contractual obligations, and still feed all domestic refineries starting with the Dangote refinery, with a proviso to produce first for the nations’ local consumption before any export in the interest of national security.
It goes without saying that there would be interests, both foreign and domestic that prefers the status quo and current modus operandi to stay in effect, as they are direct and indirect beneficiaries of the current system, and this is why it is pertinent for the two companies to come together for the common good and national interest.
We live in a world where perception is almost reality, and Nigeria must never lose sight of this fact. Mr. Aliko Dangote is first and foremost a Nigerian, subject to the laws of the country, hence there are several legitimate ways the government can protect its own interest, if any without resorting to a public show.
Again, Inspite of himself and whatever allegations, sentiments or petitions that are leveled against him, Aliko Dangote ought to be properly managed by the regulators and the government for the giant strides he has embarked upon, thereby putting Nigeria on the global map for something positive outside of entertainment.
The nation’s regulator calling out such an investor, said to be the highest single tax payer in the country in such casual manner and on national television is not in the best interest of the nation’s fledgling economy, and image, especially in such a news sensitive industry.
It is also sad to note that the Dangote refinery has not produced any duly signed and legally enforceable agreement with any domestic crude oil supplier prior to this time, and for the purpose of feedstock supply to the refinery, which is very strange for a business of that magnitude, and a highly unusual and unprofessional practice in the oil and gas industry. This is actually the crux of the matter as the oil industry apparently operates differently from the cement and other industries where Mr. Dangote has been an experienced player for decades.
However, the Nigerian people are of any consideration in this equation, then It is in the best interest of Nigeria’s economy that the NNPCL, the NMDPRA, and the owners and management of the Dangote refinery sheath their swords and work together for the common good of the country. If that is the focus, it will be far too difficult to fight so publicly and so dirty. The opportunity of this massive Nigerian establishment must never be blown on the altars of ego and personal interest.
The job of any government is to create a conducive atmosphere for every business interest both local, foreign, public or private to thrive, and for a struggling economy which currently begs for foreign direct investments above all else, no ambassador is better positioned for that message at this moment, than Mr. Aliko Dangote, Inpsite of himself. He has been there, and against all odds, he has done that which others are too concerned, or too cautious to do. The NNPCL has to strategically increase its crude oil production to meet new demands. the company has to be intentional about this, it certainly isn’t a rocket science to achieve that, and that should be the log term focus.
That refinery, should be to the benefit of the NNPCL, the people and government of Nigeria, and of course the owners and management of the company, and this can only happen if national interest is the collective goal.
A sports team does not play or score goals against itself and still appear normal to spectators.
More than 100 Chinese original equipment manufacturers are being wooed for investment, technology and manufacturing capacity to aid growth in Nigeria’s oil and gas industry.
The Nigerian Content Development and Monitoring Board (NCDMB) made the disclosure through its Director, Project Certification and Authorisation Division and Senior Technical Adviser to the Executive Secretary, Austin Uzoka.
This was detailed in a statement issued by the Board which stated that Uzoka was representing the Executive Secretary, Felix Ogbe, at the 15th China Shale Oil and Gas Summit in Chengdu, China, where he made the disclosure.
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According to Ogbe, the board was seeking to move the relationship between Nigerian oil and gas operators and Chinese manufacturers beyond the conventional buyer-seller model to investment, manufacturing, technology transfer and integration into global supply chains.
He said the Nigerian Oil and Gas Content Development Act (NOGCDA) guaranteed patronage for oil and gas equipment manufacturing facilities established in Nigeria, adding that such investments could also provide access to opportunities across the Gulf of Guinea.
“We are looking beyond the traditional buyer-seller relationship. What can we build together? We want Chinese companies to see Nigeria not simply as a market for their products, but as a strategic investment destination, a platform for manufacturing and technology development, and a gateway to opportunities across the wider African market,” he said.
He highlighted the Nigerian Oil and Gas Park Scheme (NOGPS) as a platform for Chinese original equipment manufacturers to establish manufacturing, assembly and service operations in Nigeria.
He said the scheme would provide opportunities for technology transfer, technical arrangements and the integration of Nigerian businesses into the supply chains of Chinese companies.
The ES also identified China’s capabilities in manufacturing, engineering, technology and energy infrastructure as areas that could support Nigeria’s industrial development.
“China has developed tremendous capabilities in manufacturing, engineering, technology and energy infrastructure. We want to explore how those capabilities can be connected with the opportunities that exist in Nigeria, for mutual benefits,” he added.
Nigeria’s local content policy had evolved from increasing Nigerian participation in oil and gas projects to a broader industrial development agenda focused on manufacturing, technology ownership and global competitiveness, he pointed out.
“Nigeria’s local content journey has evolved significantly since the local content law was enacted in 2010. What began primarily as an effort to increase Nigerian participation in the oil and gas industry has developed into a broader industrial development agenda focused on building capabilities, deepening manufacturing, promoting technology ownership and positioning Nigerian businesses to compete within regional and global markets,” he observed.
The engagement formed part of Nigeria’s participation in the 15th China Shale Oil and Gas Summit, held from September 20 to 23 at the Chengdu Century City International Conference Centre.
The summit, themed ‘Empowering Efficient and Green Development via Intelligent Technologies, Innovating to Lead the Shale Oil and Gas Revolution’, provided a platform for Nigerian oil and gas stakeholders to showcase investment opportunities in manufacturing, technology and oil and gas services.
According to the NCDMB, several Chinese OEMs expressed interest in exploring business relationships with Nigerian companies and participating in the country’s growing oil and gas manufacturing ecosystem.
In her closing remarks, the General Manager, Midstream, PCAD, Ms Lekoma Phimia, urged stakeholders to build on the connections established at the session to develop commercially viable and sustainable business relationships.
The NCDMB also used the exhibition to provide prospective investors and industry players with information on Nigeria’s oil and gas sector, local content opportunities and avenues for establishing operations in the country.
The board said the Chengdu engagement was part of efforts to expand Nigeria’s international industrial connections and advance the objectives of the Nigerian Oil and Gas Industry Content Development Act (NOGICDA).
It added that its focus was to move the local content agenda from participation to capability, manufacturing, and ultimately technology ownership and regional competitiveness.
NIPCO Group has announced plans to develop a Floating Liquefied Natural Gas (FLNG) project in Nigeria, with the proposed development estimated to require more than $3bn in investment.
This statement was made at a press conference on Thursday by the Managing Director of NIPCO Group, Nagendra Verma, who said the proposed project would have an envisaged LNG production capacity of approximately three million tonnes per annum, subject to the outcome of feasibility studies, regulatory approvals and a final investment decision.
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Verma said the project, which would mark NIPCO’s entry into the Liquefied Natural Gas (LNG) sector, was being considered for locations in the Escravos area of Delta State and the Akwa Ibom region.
“This proposed development is envisaged to comprise an FLNG facility along with associated marine and export infrastructure with the potential to serve both the international LNG market and growing domestic LNG demand in Nigeria. The proposed project is presently envisaged to produce LNG unified LNG of approximately 3 million L per annum, 3 million metric tons per annum. The proposed development is expected to represent a significant investment currently estimated in excess of $3bn.
“The final location shall be determined subsequent to the ongoing feasibility study. We are looking at strategic locations that will facilitate access to upstream gas resources, LNG processing, marine transportation and both international and domestic markets,” he said.
According to him, NIPCO had been evaluating the proposed FLNG project for the past six to nine months and was currently undertaking preliminary technical, commercial and feasibility assessments.
“We are considering various development concepts, technology solutions, financing structures and commercial options with a view to establishing a technically robust and commercially sustainable project,” Verma said.
He said the proposed development would comprise an FLNG facility alongside associated marine and export infrastructure, with the potential to serve international LNG markets as well as Nigeria’s growing domestic gas demand.
“The project is presently envisaged to have an LNG production capacity of approximately three million tonnes per annum.
“However, this remains subject to the outcome of the ongoing feasibility and technical studies, project economics, regulatory approvals and final investment decisions,” he said.
Verma said NIPCO was also evaluating the shipping and logistics infrastructure required to support both export and domestic LNG supply.
The Managing Director said the ongoing assessment covers upstream gas supply and reserves, FLNG technology and configuration, LNG production capacity, marine and export infrastructure, domestic LNG supply opportunities, shipping and logistics requirements, project economics and financing structure.
FCT Generates More IGR Than Six North Central States Combined in Three Years
The Federal Capital Territory (FCT) generated more Internally Generated Revenue (IGR) than the six states in the North Central geopolitical zone combined between 2023 and 2025, according to figures from the National Bureau of Statistics (NBS).
The FCT recorded a total IGR of ₦849.80 billion during the three-year period, while Kwara, Niger, Kogi, Plateau, Nasarawa and Benue collectively generated ₦704.42 billion.
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The FCT recorded steady growth in its internally generated revenue throughout the period, rising from ₦211.10 billion in 2023 to ₦282.36 billion in 2024, before reaching ₦356.34 billion in 2025.
For the six North Central states, combined IGR stood at ₦176.55 billion in 2023, increased to ₦214.96 billion in 2024 and rose further to ₦312.91 billion in 2025.
Kwara State recorded the highest cumulative IGR among the six states, generating ₦226.20 billion over the three years.
It was followed by Niger with ₦122.71 billion, Kogi with ₦102.73 billion, Plateau with ₦102.08 billion, Nasarawa with ₦81.58 billion, and Benue with ₦69.12 billion.
The FCT’s three-year IGR was therefore about ₦145.38 billion higher than the combined revenue of the six North Central states.
The figures also show that the combined IGR of the six states increased substantially in 2025, when their total reached ₦312.91 billion, compared with ₦214.96 billion in 2024.
See full list below:
North Central States — Three-Year IGR (2023–2025)
Kwara — ₦226.20 billion
Niger — ₦122.71 billion
Kogi — ₦102.73 billion
Plateau — ₦102.08 billion
Nasarawa — ₦81.58 billion
Benue — ₦69.12 billion
North Central Total — ₦704.42 billion
By Year:
2023 — ₦176.55 billion
2024 — ₦214.96 billion
2025 — ₦312.91 billion
FCT:
2023 — ₦211.10 billion
2024 — ₦282.36 billion
2025 — ₦356.34 billion
Three-year total — ₦849.80 billion
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