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NNPCL Reveals Dangote Refinery’s Inability To Meet 1.065bn Litres Petrol Demand

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The supply of petrol from Dangote Refinery to the Nigerian National Petroleum Company Limited (NNPCL) has fallen significantly short of expectations, deepening a growing controversy between the two entities.

A recent document from the state oil company revealed that the refinery has been unable to meet the volume of petrol requested.

According to the document titled “Summary of Volume Loading,” NNPCL requested 1.065 billion litres of petrol between September 15 and October 20.

Read More: NNPC-CNL Joint Venture Successfully Drills Meji NW-1 Well

However, Dangote Refinery supplied only 317 million litres, representing less than one-third of the requested amount.

In September, the refinery delivered 103 million litres—26% of the requested volume—while in October, 214 million litres were supplied, accounting for 32% of the demand.

The shortfall comes as Dangote Refinery officially began supplying petrol to NNPCL on September 15, with the state-run oil company initially being the sole off-taker.

However, following the Federal Government’s introduction of a new policy requiring local refineries to sell crude in naira, other marketers have since been allowed to purchase petrol directly from the refinery.

Pricing discrepancies have further strained relations between the two parties.

At the start of the petrol rollout, NNPCL stated that it bought petrol from Dangote Refinery at N898 per litre.

However, in an updated pricing template this month, NNPCL reported purchasing the product at N977 per litre, a figure Dangote Refinery has disputed.

The refinery has not provided clarification on the actual sale price.

Amid the growing supply concerns, Dangote Refinery has also addressed an ongoing legal dispute involving NNPCL.

Recall that in a statement issued late Monday, the company clarified that while it had filed a court case against the NNPCL and others in September, it plans to withdraw the case in January 2025 following progress in discussions.

The case revolves around the Federal Government’s naira-for-crude policy.

The refinery’s Group Chief Branding and Communications Officer, Anthony Chiejina, noted that the dispute dates back to June and that negotiations are now ongoing, with no party having been served with legal documents.

“We have made tremendous progress, and events have overtaken this development,” Chiejina said, adding that the company expects to formally withdraw the case at the next court hearing in January.

The legal issue centers on Dangote Refinery’s objection to the issuance of petroleum import licenses by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

In its court filings, Dangote Refinery argues that the licenses—issued to NNPCL, Matrix Petroleum, and others—contravene the Petroleum Industry Act (PIA).

The refinery contends that the import licenses threaten its business, as it produces enough Automotive Gas Oil (AGO) and Jet-A1 fuel to meet Nigeria’s current demand.

Dangote Refinery is seeking N100 billion in damages and an order to void the import licenses, claiming that NMDPRA failed to support local refineries by allowing imports that undermine its investments.

 

 

Energy

Power Restored In Four Northern States After 10-Day Blackout

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Power has been restored across Plateau, Bauchi, Gombe, and Benue States, bringing relief to residents who endured a 10-day blackout.

The Jos Electricity Distribution Company confirmed that electricity was reinstated around 7:20 p.m. on Wednesday, prompting celebrations in Jos, the Plateau State capital, and other affected areas.

READ ALSO: JUST IN: Tinubu Appoints Major General Oluyede As Acting Chief of Army Staff

The prolonged outage was caused by the tripping of a major 330kV transmission line between Benue and Enugu states, leaving several northern states without power.

The blackout severely impacted daily life and economic activities, with residents expressing frustration over the disruption to businesses, healthcare services, and personal livelihoods.

In response, President Bola Tinubu took swift action, summoning Minister of Power Adebayo Adelabu and National Security Adviser Nuhu Ribadu to address the crisis.

Presidential Adviser Bayo Onanuga disclosed on Monday that President Tinubu directed the Ministry of Power and relevant agencies to expedite restoration efforts.

“President Tinubu is deeply concerned about the reports of vandalism and deliberate destruction of essential power infrastructure,” Onanuga said in a statement.

“The President has tasked TCN engineers with bringing immediate relief to the affected states and implementing a long-term solution to prevent future outages.”

 

 

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Energy

Nigerian Power Supply: FGN Nears PPI Completion

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The Federal Government of Nigeria Power Company (FGN Power Company) has announced significant progress in the pilot phase of the Presidential Power Initiative (PPI), which is set to revolutionize the nation’s electricity transmission landscape.

The initiative, in partnership with Siemens, aims to enhance the country’s power infrastructure through the deployment of advanced technology and equipment.

READ MORE: ‘Only Savior Created By God For Nigeria’ – Presidency Slams Obasanjo

Kenny Anuwe, the Managing Director and CEO of FGN Power Company, revealed that the installation and commissioning of eight power transformers across key locations are now complete.

The transformers have been successfully deployed in Ajah, Maryland, Apo, Okene, Ihovbor, Amukpe, Potiskum, and Birnin Kebbi, resulting in a notable increase in the transmission wheeling capacity by 569.6 megawatts (MW).

In addition to the transformers, three mobile substations are operational in Ajah, Jebba, and Kawnar Dangora, further boosting the transmission capacity by an additional 151.2 MW.

Anuwe emphasized that these enhancements are pivotal in addressing the energy needs of the country and supporting economic growth.

Looking ahead, Anuwe stated that the transmission network will be augmented by an impressive 720.8 MW, with plans to commission the remaining equipment to deliver at least another 500 MW by the end of 2024.

This strategic initiative is expected to significantly improve power distribution and reliability, marking a transformative step towards a more robust energy sector in Nigeria.

 

 

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Energy

BREAKING: And Kwankwaso Joins Total Blackout Wailers

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The perennial power outage in certain parts of Nigeria has caught the attention of another frontline political figure, leaving him wailing and calling for urgent solutions.

The presidential candidate of the New Nigeria Peoples Party (NNPP) in Nigeria’s 2024 election, Rabiu Musa Kwankwaso has expressed shock that “many parts of Northern Nigeria are in total darkness today due to vandalism on the important 330kV Shiroro-Kaduna power line”.

The former governor of Kano State was disheartened that “this situation has been further compounded by the high cost of petrol and diesel in Nigeria, which has further plunged homes into darkness and forced factories to close down.”

Kwankwaso’s bitter tears were shed in a statement on Monday on his verified handle on micro-blogging site, X.

Other prominent political figures who have been lamenting the perennial power outage in several parts of Nigeria include Atiku Abubakar and Peter Obi of the Peoples Democratic Party (PDP) and Labour Party (LP) respectively.

ALSO READ: BREAKING: Atiku Laments Complete Blackouts In Certain Regions Of Nigeria

He wrote, “It is very disheartening that many parts of Northern Nigeria are in total darkness today due to vandalism on the important 330kV Shiroro-Kaduna power line that supplies the states of Kano and Kaduna and another line that supplies Bauchi, Gombe and other parts of the northeast.

“This situation has been further compounded by the high cost of petrol and diesel in Nigeria, which has further plunged homes into darkness and forced factories to close down.

“The time this crisis has taken to be addressed underscores the huge deficit of capacity our power sector has in order to address large scale problems and this must be addressed to avoid any future disruption.

“It is about time that we look into alternative power sources to address our energy needs and we need to exploit the abundant resources available to this country.

“I wish to encourage all state governments and private investors to invest in alternative electricity sources, just like we did in Kano by installing two turbines in the Challawa Gorge and Tiga Dams in order to reduce the reliance on our inadequate and aged energy sources. – RMK”

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