The Independent Petroleum Producers Group (IPPG), which accounts for about 30% of Nigeria’s crude oil production, has expressed strong reservations about being compelled to sell crude oil to the Dangote Refinery and other local refineries. The group emphasized the importance of maintaining the “willing-buyer, willing-seller” framework as prescribed by the Petroleum Industry Act 2021, arguing that no private sector business should be unduly pressured into subsidizing another.
The IPPG, led by Chairman Abdulrazak Isa, suggested that the Nigerian National Petroleum Company (NNPC) should instead utilize its allocated 445,000 barrels per day to meet domestic consumption
needs, allowing independent producers to maintain their existing commercial agreements and economic interests. Isa also called for transparency in the allocation process and urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to involve IPPG in the production forecast process to ensure accurate and fair allocations.
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- Meanwhile, modular refinery owners have also voiced concerns about being sidelined in the government’s decision to sell crude oil to the Dangote Refinery. They warned against the potential creation of a monopoly and urged the government to extend the same support to all refineries in Nigeria, not just Dangote. The Federal Government’s decision to commence crude sales to Dangote in October, with the first PMS delivery expected in September, has sparked a broader debate within the oil and gas sector about fairness and market dynamics.
