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Dangote tells FG to stop crude-for-loan deals

Aliko Dangote, the President of Dangote Group, has urged Nigeria to cease pledging its crude oil in order to guarantee a steady supply of raw materials for local refineries.

During a summit organized by the Crude Oil Refinery Owners Association of Nigeria in Lagos, Dangote expressed concern that while countries like Norway are investing oil revenues for future wealth funds, Nigeria and other African nations are spending their oil earnings as if they were from the future, as reported by The Punch.

Recent reports revealed that the Nigerian National Petroleum Company Limited (NNPCL) had committed to providing 272,500 barrels per day of crude oil through a series of crude-for-loan agreements amounting to $8.86 billion.

It was noted in the report that by committing 272,500 barrels of crude oil daily, the NNPCL would allocate approximately 8.17 million barrels for various loan agreements each month. This assessment was drawn from a report by the Nigeria Extractive Industries Transparency Initiative and NNPC’s financial statements.

At the event on Tuesday, Mansur Ahmed, the Group Executive Director representing Dangote, stressed the need for the country to prioritize the implementation of domestic crude initiatives.

He further added that the company constructed the 650,000 barrels per day capacity Dangote refinery in Lagos without any support from the government.

Dangote highlighted that an additional 1.8 million barrels of refining capacity is expected to be operational within the next three years across Kuwait, China, and Bahrain.

Meanwhile, Dangote pointed out that Europe is imposing stricter environmental standards, with Holland and Belgium prohibiting the export of low-quality petroleum products from their ports, which were previously destined for Africa.

According to a report, Dangote mentioned that several refineries in Europe and China, with a combined capacity of 3.6 million barrels per day, are anticipated to cease operations in the next few years.

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