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Dangote, Regulators Face-Off: Oil Producing Communities Group Threatens To Seal Oil Pipeline Facilities

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The Host Communities of Nigeria Producing Oil and Gas (HOSTCOM), has threatened to renew agitation for greater autonomy and control of their natural resources, if the Nigerian National Petroleum Corporation Limited (NNPC Ltd) and the International Oil Companies (IOCs) fail to sell and supply crude oil to Dangote Refinery and other local refineries.

It was gathered that this was borne out of the group’s to ensure that Nigeria is energy-secure and becomes self-sufficient in local production of Premium Motor Spirit (PMS) and diesel.

HOSTCOM, comprising all the states producing oil and gas in Nigeria, over the weekend, lamented that despite the billions of dollars spent on turnaround maintenance of Nigeria’s refineries, the country remains reliant on importing refined products.

According to them, this persistent issue, highlights the widespread corruption within Nigeria’s oil and gas industry, allegedly orchestrated by influential cabals who are intent on maintaining the status quo of exporting crude oil while importing refined petroleum products.

HOSTCOM warned that it will not hesitate to publicly name these identified cabals if necessary.

READ ALSO: BREAKING: Peterside Faults Narrative On Crude Resale By Dangote

Biztellers reports that the National President of HOSTCOM, Dr. Benjamin Tamaramiebi, accompanied by his executives and traditional rulers from the Niger Delta region, toured the Dangote Petroleum Refinery & Petrochemicals and the Dangote Fertiliser Limited complex.

Notable traditional rulers included the Chairman of the Niger Delta Monarchs Forum, HRM Frank Okorakpo; Deputy Chairman of the Traditional Rulers of Oil Mineral Producing Communities of Nigeria (TROMPCON), HRM Obafemi Ogaro; and Egbesuwei Gbanraun X Agadagba Pere, HRM (Capt) Frank Okiakpe, among others

The National President, Dr. Tamaramiebi said, “Our visit today to the largest and magnificent 650,000 bpd private Refinery in Africa (Dangote Refinery) has opened our eyes to several ills, particularly to the monumental corruption going on in Nigeria’s oil and gas industry.

“It is obvious why the existing Federal Government Refinery in Port Harcourt, Warri and Kaduna can never work or operate maximally despite the billions of dollars spent on the so-called Turn Around Maintenance over the years. It is now clear that some persons in government and outside government have been identified as the cabal holding Nigeria oil sector by the jugular. We have identified them, and we shall reveal their names to the people of Nigeria if this trend continues.”

While emphasising on the need for Nigeria to refine its crude locally, HOSTCOM urged the Federal Government to back the Dangote Petroleum Refinery & Petrochemicals and other domestic refineries to end the nation’s persistent reliance on imported petrol, diesel, and other refined products.

He also called for nationwide support for Dangote Petroleum Refinery and other modular refineries to eliminate the need for imported refined products. It expressed gratitude to the National Assembly and Nigerians but warned against any sabotage that could hinder the country’s progress towards self-sufficiency in refined products.

“We are grateful to the 10th National Assembly, good-spirited individuals and associations who have been rallying support for Aliko Dangote. We at HOSTCOM have come today to drum up support for Dangote Refinery. We will stand with Dangote to put an end to continuous importation of less quality and costly refined petroleum products into Nigeria,” stated the group.

HOSTCOM, which emphasised that every Nigerian’s aspiration is for the country to refine its own crude oil for the benefit of its people, warned that any individual who opposes this national desire will face the wrath of the masses.

The group also lampooned the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, over his recent statement that the government would not halt the importation of refined petroleum products.

HOSTCOM called on President Bola Ahmed Tinubu to remove Ahmed from his position, arguing that his previous associations with key players in the sector make him unfit to effectively regulate the downstream industry.

“We unequivocally call for the immediate sack of Farouk Ahmed. It is now clear that he as the CEO of NMDPRA is responsible for issuing import licences to his cronies outside the government to continue to import sub-standard refined petroleum products into the country. This is not surprising given that he has served on the boards of some downstream companies in the past. He is therefore obviously conflicted and incapable of performing the duties of a regulator for the downstream sector. It is important to immediately replace him with an individual who is not encumbered by such conflict,” the group added.

The group praised the President of Dangote Industries Limited, Aliko Dangote for his patriotism in investing in and constructing the refinery in Nigeria, noting that his endeavour has significantly contributed to the country’s economic growth and development. It emphasised that the refinery is crucial in providing local solutions to Nigeria’s refining needs, thereby reducing the nation’s dependency on imported refined petroleum products.

The group urged President Tinubu to support the project, highlighting that it will enhance the economy, create thousands of jobs, ensure the sustainability and affordability of products, and bring substantial benefits to the host communities, among other positive effects.

“We call on President Bola Tinubu to support and sustain this refinery which is in his own state. He must do away with the cabals holding the oil sector to ransom,” it added.

The group further asserted that the President must not tolerate the economic sabotage being carried out by the IOCs operating in Nigeria, which have refused to sell crude oil to the Dangote Refinery and other modular refineries. They condemned this as an affront to the Nigerian people and a deliberate attempt to undermine the President’s renewed hope agenda, which aims to revive the economy.

“We call on Mr. President to direct NNPC or NNPCL to compel the IOCs operating in our communities to sell and supply crude oil to Dangote Refinery and other local Refineries in line with section 109 of the Petroleum Industry Act PIA 2021 particularly section 109(4)(b) which states that “the supply of crude oil shall be commercially negotiated between the lessee and the crude oil refining licensee, having regard to the prevailing international market price for similar grades of crude oil,” it added.

It also pointed out that, despite the PIA, the IOCs continue to lack transparency and accountability, alleging ongoing exploitation of oil-producing communities. The group warned that if the IOCs fail to supply crude oil to domestic refineries, host communities will be forced to take decisive action.

The Vice President (Oil & Gas) at Dangote Industries Limited, Devakumar Edwin, who hosted the delegates, explained that the refinery was established primarily to source and refine local crudes for the benefit of Nigeria, while also exporting excess production to boost the economy.

Edwin noted that the lack of sufficient Nigerian crude supplies has necessitated importing crude from other countries and continents. He said that if the refinery had not been designed to process a wide range of crudes, including various African and Middle Eastern crudes as well as US Light Tight Oil, it would have become inactive due to the lack of Nigerian crude supplies.

Energy

Nigeria’s Gas Output Increases By 2.9%, Reaching 2.29 MSCF

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Amid a slight increase in gas production, Nigeria’s oil output experienced a substantial rise in November 2024.

Gas production saw a 2.9% month-on-month (MoM) increase, reaching 2,292,951 million standard cubic feet (MSCF) from 2,292,471 MSCF in October.

However, on a year-on-year (YoY) basis, the growth was minimal, with a mere 0.02% increase in output for the first 11 months of 2024, compared to the same period in 2023.

READ MORE: Tinubu Mourns Ex-U.S. President Jimmy Carter, Celebrates His Legacy

The latest gas report from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also revealed a 1.6% increase in domestic gas consumption.

A total of 606,658 MSCF was consumed locally, compared to 596,861 MSCF during the same period in 2023. Gas exports, meanwhile, rose by 6.9%, reaching 829,156 MSCF, up from 775,547 MSCF in the corresponding period of 2023.

This growth in exports continues to play a vital role in bolstering Nigeria’s foreign exchange earnings.

Despite these positive figures, sources close to the Ministry of Petroleum Resources (Gas) noted that oil remains the dominant force in Nigeria’s energy sector, with gas taking a secondary role.

On the other hand, the NUPRC’s oil production report revealed a remarkable surge.

Nigeria’s oil output, including condensates, rose by 13.3% year-on-year in November 2024, reaching 1.7 million barrels per day (bpd), up from 1.5 million bpd in November 2023. Month-on-month, oil production also increased by 10%, from 1.5 million bpd in October 2024.

Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprises (CPPE), discussed the broader structural dynamics within Nigeria’s economy, highlighting the dominance of the non-oil sector.

In his 2025 Outlook, Dr. Yusuf noted that the non-oil sector contributed 94.43% to Nigeria’s GDP in Q3 2024, while the oil sector accounted for just 5.57%.

“However, the economy is characterized by a paradox of the oil sector contributing an estimated 90% of foreign exchange earnings, while the non-oil sector accounts for about 10%,” Dr. Yusuf said.

“This is a structural shortcoming in our economy which needs to be addressed, as sectors that contribute hugely to GDP have no corresponding contribution to foreign exchange earnings.”

He further emphasized the need to address the challenges faced by the non-oil sector, which include issues related to productivity, infrastructure, funding, and regulatory constraints.

“The policy implication is that more should be done to fix the challenges of productivity and competitiveness of the non-oil sector of the economy,” Dr. Yusuf added

 

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JUST IN: NNPC Ltd Reopens Warri Refinery

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The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced that the 125,000-barrel-per-day Warri Refining & Petrochemicals Company (WRPC) in Warri, Delta State, has become operational.

This is coming about a month after the commencement of operations at the 60,000-barrel-per-day-old Port Harcourt Refinery.

The Group Chief Executive Officer, NNPC Ltd, Mele Kyari, made the disclosure during a tour of the facility on Monday.

ALSO READ: SERAP Urges Tinubu To Direct CCB To Publish President’s, VP’s, Others Assets

A video posted by Channels TV on Monday showed Kyari addressing a tour team, which included the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed.

Before the tour commenced, Kyari explained that the inspection aimed to show Nigerians the level of work completed so far.

According to him, although the repairs on the facility are not yet 100 per cent complete, operations have commenced.

He said, “We are taking you through our plant. This plant is running. Although it is not 100 per cent complete, we are still in the process. Many people think these things are not real. They think real things are not possible in this country. We want you to see that this is real.”

Located in Ekpan, Uwvie, and Ubeji, Warri, the petrochemical plant produces 13,000 metric tonnes per annum (MTA) of polypropylene and 18,000 MTA of carbon black.

Commissioned in 1978 and managed by NNPC Ltd, the WRPC was built to supply markets in the southern and southwestern regions of Nigeria.

The mechanical completion of the facility was initially scheduled for the first quarter of 2024, according to the Spokesperson of the NNPC Ltd, Olufemi Soneye.

“Warri should be done by Q1 (first quarter) 2024,” Soneye stated.

The WRPC is one of Nigeria’s four refineries. Others include the old and new Port Harcourt Refining Company in Rivers State and the Kaduna Refining and Petrochemical Company in Kaduna State.

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Dangote Partnership: MRS Urges Nigerians To Insist On N935/Litre Petrol Price Nationwide

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MRS Oil Nigeria Plc, a prominent player in the Nigerian downstream oil industry, has implemented a new petrol price of N935 per litre across all its retail service stations nationwide.

The company has also called on Nigerians to monitor and report any outlets that fail to adhere to the new price structure.

Biztellers reports that this is consequent upon an announcement by the President of Dangote Industries Limited, Aliko Dangote, that the Dangote Petroleum Refinery has partnered with MRS Oil and Gas to offer petrol at N935 per litre at retail outlets, following a reduction in the ex-depot price from N970 to N899.50 per litre.

ALSO READ: Dangote Slashes PMS Price To N899.50k

It was gathered that MRS Oil Nigeria Plc has instructed all its outlets to implement the new price immediately, setting up a digital platform and monitoring team to ensure full compliance.

In a statement on Monday night, the company declared, “Petrol is now being sold at N935 at MRS Filling Stations nationwide. If you find any station not following this price, please report it. Call 08009447853 or email: NG-FMKPMGWHISTLEBLOWING@NG.KPMG.COM

Emphasising the eco-friendly nature of its products, MRS Oil added, “We call on all petrol station owners to join MRS Oil Nigeria Plc in improving the supply chain of our beloved country, ensuring product quality and availability in every corner of Nigeria for the benefit of all Nigerians.”

In Lagos, commuters were seen queuing at MRS filling stations to purchase petrol, with many expressing their gratitude to the Dangote Petroleum Refinery and MRS Oil and Gas, urging other marketers to support the indigenous refinery rather than import off-spec products into the country.

A commuter at the MRS station at Alapere on the Lagos Ibadan Express way, Ibukun Phillips, could not hide her joy as her husband filled up their car.

“I am very happy today. This is a victory for Nigeria,” she said. “The price reduction is the best gift of the season. But beyond just the reduction, we are buying standard, eco-friendly petrol at a lower rate. My husband and I have decided we will only be using MRS from now on because we are confident in the quality of the product and supporting the economy.”

A commercial bus driver, Adio Ajibade described the price reduction as a great relief, especially during the festive season.

“The reduction is a great relief. It will reduce transportation costs and benefit Nigerians. God will continue to bless Alhaji Aliko Dangote,” he said.

A public affairs analyst and university lecturer, Dr. Tunde Akanni, said the collaboration between Dangote Petroleum Refinery and MRS Oil represents a significant step towards improving the affordability, quality, and sustainability of petroleum products in Nigeria.

According to Dr. Akanni, “this move will not only help ease the financial burden on Nigerians but also promote a more environmentally conscious approach to fuel consumption, benefitting both the economy and public health in the long term.”

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