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.
The NNPC Limited has raised alarm over what it described as a growing wave of fraudulent claims suggesting that the company is selling refinery scrap materials and equipment to individuals and private entities.
In a public notice by its Chief Corporate Communications Officer, Andy Odeh, the company categorically dismissed the claims as false, clarifying that it has not initiated or approved any process for the sale of scrap metals, refinery components, or equipment from any of its facilities.
According to the company, it has neither issued requests for bids, tenders, nor expressions of interest relating to such transactions, contrary to information being circulated in some quarters.
More troubling, the company revealed that certain individuals have been impersonating NNPC officials, falsely presenting themselves as authorised agents to facilitate the sale of so-called refinery scrap.
ALSO READ: Why Osun is Tapping into $2 Trillion Global Creative Industry Economy
“These individuals are not authorised by NNPC Limited and are attempting to mislead members of the public,” the statement noted, highlighting the sophistication of the fraudulent scheme.
The development raises concerns about the exploitation of public trust and the potential financial risks to unsuspecting individuals and businesses.
NNPC therefore urged stakeholders, corporate organisations, and the general public to exercise vigilance and avoid engaging in any transaction linked to such claims.
“For the avoidance of doubt, NNPC Limited is not conducting, nor has it authorised, any sale of refinery scrap or equipment,” the company reiterated.
It further emphasised that any legitimate disposal of assets would be carried out through transparent, regulated processes and communicated through its official platforms.
The company also encouraged the public to report suspected fraudsters to law enforcement agencies, as part of efforts to curb the spread of such criminal activities.
NNPC reaffirmed its commitment to transparency, accountability, and the responsible stewardship of Nigeria’s energy assets.
The NNPC Foundation Limited/Gte, the Corporate Social Responsibility (CSR) arm of the Nigerian National Petroleum Company Limited (NNPC Ltd), has won the CSR Champion Award (Health) 2025 instituted by the Independent Newspapers.
Biztellers reports that the award was presented during the Silver Jubilee edition of the Independent Newspapers Awards, themed “Game Changers: Breaking Barriers and Shaping Tomorrow,” held at Eko Hotel and Suites on Saturday, 18 April 2026.
The CSR Champion Award (Health) recognises the Foundation’s work in healthcare and its broader commitment to improving lives through social investment programmes spanning health, education, environment, and access to energy.Primary & Secondary Schooling (K-12)
The recognition follows a series of health initiatives delivered by the Foundation, including free cataract screening and surgeries that restored sight to over 6,000 Nigerians, including minors born blind; cancer and glaucoma interventions; medical outreaches to underserved communities; renovation and furnishing of three wards with 100 beds at the National Orthopaedic Hospital, Igbobi; partnership and sponsorship of heart surgeries; and provision of dental health accessories to children in special schools, among others.
The NNPC Foundation noted that these results were made possible through the leadership and support of the NNPC Ltd. Management team, whose commitment has continued to strengthen the Foundation’s capacity to deliver social investments across the country.
Reacting to the award, the Managing Director of NNPC Foundation, Emmanuella Arukwe, described the recognition as a validation of the Foundation’s work and the trust placed in it by Nigerians. She noted that the award means so much to the company because it represents the confidence Nigerians have placed in its work and the value they see in purposeful social investment.
“It speaks to the resilience of the communities we serve, the dedication of our team, and the strength of partnerships that have enabled us to do meaningful work in health, education, environmental sustainability and access to energy,” she added.
In addition, Arukwe noted that “these results have also been made possible through the leadership and support of the NNPC Ltd. Management team, whose backing has been instrumental to the success of the Foundation’s work. We receive this award with gratitude, and with a renewed sense of responsibility to do more and reach further across the country.”
The NNPC Foundation Limited/Gte remains committed to advancing health interventions that improve outcomes and contribute to national development.
The Nigerian National Petroleum Company Limited (NNPC Ltd), through its Research, Technology and Innovation (RTI) Division, in collaboration with the Petroleum Technology Development Fund (PTDF), has signed a Memorandum of Understanding (MoU) with Sonatrach, the Algerian National Oil Company, for cooperation in research, development, and innovation.
The agreement, signed by NNPC Ltd’s Executive Vice President, Business Services, Sophia Mbakwe, and Sonatrach’s Managing Director, Khodjah Mohamed, establishes a formal framework for joint work in research and technology exchange between the two national oil companies.
This was contained in the press statement issued on Thursday by Chief Corporate Communications Officer Mr. Andy Odeh.
According to the statement, the agreement, held during the opening ceremony of the 3rd Meeting of the African Petroleum Producers’ Organization (APPO) Forum for R&D Directors at the PTDF Tower in Abuja, Nigeria, brought together research and development directors from APPO member countries.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, represented by former Secretary General of APPO, Omar Farouk Ibrahim, said the forum was one of four measures introduced by APPO to address challenges from the global energy transition, which center on funding, technology, and markets.
“The R&D forum tackles technology and expertise needs, the African Energy Bank addresses funding constraints, and the Central African Pipeline System supports regional oil and gas market integration,” Lokpobiri stated.
ALSO READ: Peterside Harps on Strong Leadership at NCDMB Book Reading Series
Earlier in his remarks, Group Chief Executive Officer, NNPC Limited, Engr. Bashir Bayo Ojulari, represented by the Company’s Chief Financial Officer, Adedapo Segun, said research and development must form a central part of the overall strategy in the African oil and gas industry.
He called for research and development centres to function as engines of industrial competitiveness. “Collaboration in research and development is of strategic importance. The cost of innovation might be high, but the cost of obsolescence would be greater,” he stressed.
Ojulari called for a unified strategic framework through which resources could be pooled, data integrated, and risks shared across member countries.
He further urged the rapid adoption of digital technologies, artificial intelligence, and advanced engineering to improve upstream, midstream, and downstream operations.
On his part, the APPO Secretary General, Farid Ghezali, urged African petroleum-producing countries to ensure research in the oil and gas sector produced solutions that are practical and directly relevant to the continent. “We must ensure that our research delivers solutions that are practical and of direct use to Africa,” he stated.
Also speaking, the Executive Secretary of the Petroleum Technology Development Fund (PTDF), Prof. Shu’aibu Shehu Aliyu, highlighted the value of the partnership between NNPC Limited and PTDF in supporting decarbonization and environmental protection efforts across APPO member countries.
Chief Innovation Officer of NNPC Research, Technology and Innovation and incoming Chairman of the APPO R&D Directors Forum, Rasheed Ojulari, said the forum would give immediate priority to joint programs in the core areas of upstream optimization, artificial intelligence, decarbonisation processes, and industrial systems development.
NNPC Ltd Denies Selling Refinery Scrap
Why Osun is Tapping into $2 Trillion Global Creative Industry Economy
Adeleke Justifies Osun Security Trust Fund
Dangote Refinery Showcases Power of Domestic Value Addition – Prof Ike‑Muonso
NNPC Foundation Wins CSR Champion Award (Health)
Dangote Refinery Exports 1.1bn Litres of Aviation Fuel to Europe, Supplies 95% of Nigeria’s Jet A1 – AON
Trump’s Family Unveils New Cryptocurrency Platform
Senate Denies Receiving Petitions Against Tinubu’s Ambassadorial Nominees
Dangote Cement Lights Up Benue Host Communities With CSR Initiatives
Reps Recommend 3-year Jail Term For Aviation minister
Tems Sets New Record On Billboard Hot 100 Chart
