Oil & Energy

Local Crude Shortage Crippling Nigerian Refineries – MAN

Published

3 months ago

July 20, 2026

The inability of local refineries to secure enough Nigerian crude oil is threatening the country’s push for energy security and lower fuel costs, and setting off warning bells from manufacturers and business leaders, ARINZE NWAFOR reports

The Manufacturers Association of Nigeria has expressed concern over the inability of local refineries to access sufficient crude oil from within the country, warning that the situation is forcing Nigerian refiners to compete with international buyers for the nation’s crude and undermining the benefits of domestic refining.

The Director-General of MAN, Segun Ajayi-Kadir, made the remarks while reacting to reports that the Dangote Petroleum Refinery had purchased two cargoes of crude oil from the United Arab Emirates amid persistent domestic supply constraints.

Ajayi-Kadir described the development as evidence that domestic refiners were not getting adequate and reliable supplies of Nigerian crude, saying the situation was detrimental to the country’s industrialisation drive.

“That is obvious. The Dangote refinery’s decision to import crude oil from the United Arab Emirates amplifies the long-standing claims by domestic refiners that they are not receiving an adequate and reliable supply of local.

“The inability of our local refineries to access sufficient feedstock from Nigeria is distressing. For far too long, Nigerian crude refineries have had to compete with international buyers for our own (Nigerian) crude, often at international market prices plus additional logistics costs. This situation is not only economically inefficient, but it also erodes the advantage of local refining, which is to reduce import dependence, conserve foreign exchange, and create value addition within the country”, Ajayi-Kadir said.

The MAN DG urged the Federal Government to overhaul the domestic crude supply framework to ensure Nigerian refineries receive priority access to locally produced crude.

“This situation highlights the urgent need for a more structured and transparent domestic crude oil supply framework that prioritises local refineries. Therefore, MAN calls on the Federal Government, through the NNPCL and the NUPRC, to urgently ensure that a sufficient and consistent share of Nigeria’s crude production is allocated for domestic refining on fair commercial terms, particularly during this period of supply disruptions.

“At the same time, no effort should be spared in intensifying crude production. We should strengthen pipeline security, improve terminal reliability, and implement policies that effectively balance domestic refining needs with export commitments,” he said.

He stressed that Nigeria’s status as one of Africa’s largest crude oil producers should translate into stronger domestic value addition rather than dependence on imported feedstock.

“It is very concerning that a country as richly endowed with crude oil as Nigeria still finds itself in a situation where domestic refineries have to source crude from abroad to sustain their operations. Ultimately, the measure of success is not how much crude Nigeria produces, but how much value the country creates from that crude through domestic refining and how it speaks to our energy self-sufficiency. That is where the true economic benefits of our oil wealth lie,” Ajayi-Kadir added.

However, Ajayi-Kadir affirmed that sourcing crude from the UAE should be seen as a commercial decision rather than a diplomatic milestone.

“It could contribute positively to the broader commercial relationship between Nigeria and the UAE, but it should primarily be viewed as a commercial transaction rather than a diplomatic milestone. Refineries source crude based on technical specifications, availability, pricing, logistics and commercial terms,” he said.

Stakeholders push reforms to sustain Nigeria’s economic gains

According to MAN’s DG, while refiners should retain the flexibility to source crude oil internationally, Nigeria should prioritise strengthening its domestic supply to lower production costs, conserve foreign exchange, and improve energy security.

“Our priority should therefore be to strengthen the domestic crude supply framework, ensuring that local refiners have reliable and sufficient access to Nigerian crude. We therefore reiterate the call on the Federal Government and the relevant agencies to urgently reform the crude oil allocation to ensure that local refineries receive priority access to a commercially viable portion of Nigeria’s crude production,” Ajayi-Kadir said.

It was earlier reported that the President of the Lagos Chamber of Commerce and Industry, Leye Kupoluyi, described Dangote refinery’s decision to import crude from the UAE as a commercial rather than patriotic decision.

Kupoluyi said the refinery was expected to source crude based on pricing, quality, availability and commercial considerations.

“It’s very straightforward. It’s a business. When you are running your business, you always look at opportunities. Opportunity drives business. We should look at how much the UAE suppliers are selling to Dangote. If the refinery has seen a better deal somewhere, we cannot say because of patriotism it must buy from Nigeria,” Kupoluyi said.

He added that refiners should remain free to source crude from any market provided such transactions align with Nigeria’s national interest, noting that the government should protect national interest while allowing businesses to make commercially sound decisions.

Report said the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, described Dangote refinery’s crude imports from the UAE as a business decision driven by domestic supply constraints rather than diplomacy.

“This is a business decision, and the Dangote refinery is very big. The NNPC cannot meet Dangote’s demands in terms of crude allocation, so it has to source crude from elsewhere that is commercially competitive. If the quality standard is good and the price is good, why not? It is purely a business decision; it is not a diplomatic thing,” Yusuf said.

He added that increased trade could further strengthen Nigeria-UAE economic relations, especially after both countries signed a trade protocol.

Yusuf also said the development highlighted the long-standing challenge of inadequate domestic crude supply to local refiners.

“Local crude has accounted for only about 30 per cent of Dangote Refinery’s feedstock from the beginning because domestic availability is not meeting demand. There are joint venture arrangements, previous forward sales and commercial terms that make it necessary to buy elsewhere. If the terms offered locally are not favourable, the refinery has to source crude abroad.

“It should be part of the business model of any refinery to source crude locally or internationally. There are countries with some of the world’s biggest refineries that do not produce crude at all. What matters is that the economics make sense. This is business, not politics or diplomacy”, Yusuf said

Oil & Energy

15-Year Blackout: NDPHC Begins Electricity Project In Kaduna Community

Published

6 days ago

October 26, 2026

The Tide

The Niger Delta Power Holding Company Limited (NDPHC) has commenced a major electricity project aimed at ending a 15-year blackout in Rigasa community, Igabi Local Government Area of Kaduna State.

The General Manager, Corporate Communication and External Relations, NDPHC, Nazo Agim, made this known in a statement, in Abuja, at the weekend.

Agim said that the project, facilitated by the Bola Ahmed Tinubu Ideological Group (BAT-IG), comprises a two-kilometre 11kV line, a 1.5-kilometre 33kV line and a 7.5MVA, 33/11kV injection substation.Access Services

According to him, the project is designed to strengthen electricity distribution and improve power supply to residents and businesses in the community.

He said that the Rigasa project underscored NDPHC’s commitment to extending critical electricity infrastructure beyond generation to bridge distribution gaps.

He also said that the project would stimulate socioeconomic development and improve the quality of life in underserved communities across Nigeria.

Agim disclosed that a groundbreaking ceremony was performed earlier on Friday, by the Kaduna state Deputy Governor, Dr. Hadiza Balarabe, who represented Governor Uba Sani.

According to him, Balarabe, while speaking during the ceremony commended NDPHC for the intervention, describing it as a life-saving initiative that would address the community’s longstanding electricity challenges.

The NDPHC Managing Director, Jennifer Adighije, reaffirmed the company’s commitment to addressing the community’s electricity challenges.

Represented by the Executive Director, Networks, Babayo Bello, Adighije also reiterated NDPHC’s commitment to supporting President Bola Tinubu’s vision of improving electricity supply across the country.

She said that although NDPHC’s primary mandate was power generation, the company’s interventions also extended to transmission and distribution infrastructure to address critical gaps and expand electricity access.

According to her, the Rigasa project represents a worthwhile investment that will ease residents’ hardship and demonstrate the impact of targeted infrastructure development in underserved communities.Access Services

NDPHC Executive Director, Strategy and Commercial, Patrick Obahiagbon, commended the Kaduna state government and the community for their cooperation and support for the project.

The District Head of Rigasa, Mohammed Idris, also commended NDPHC’s management for its commitment to expanding electricity access in the community.

Oil & Energy

FG Commissions 640MW Transmission Capacity To National Grid

Published

6 days ago

October 26, 2026

The Tide

As the federal government intensifies efforts to strengthen Nigeria’s power infrastructure, it has commissioned 640 megawatts (MW) of electricity transmission capacity to the national grid with an additional six transmission substations in Kano and Katsina states, respectively.

The projects comprise four substations at Walalambe, Kumbotso, Dakata and Dan-Agundi in Kano State, which collectively add 544MW of transmission capacity, and two 60 megavolt amperes (MVA) substations in Kankia Local Government Area of Katsina State, contributing another 96MW.

The additional capacity is expected to improve the transmission network’s ability to evacuate and deliver available electricity to distribution companies and consumers in the two states.

The Ministry of Power announced the developments in a statement issued at the weekend.

According to the statement, the additional capacity is expected to improve the transmission network’s ability to evacuate and deliver available electricity to distribution companies and consumers in the two states.

The projects, however, increase transmission capacity rather than electricity generation, implying that their impact on supply would depend partly on the availability of power from generating plants and the capacity of downstream distribution networks.

Speaking at the commissioning of the Kankia substation, the Minister of Power, Joseph Tegbe, said the projects reflected President Bola Tinubu’s commitment to improving the country’s electricity infrastructure.

“Mr. President’s Renewed Hope Agenda recognizes that economic ambition requires dependable infrastructure,” Tegbe said.

He added that investments in electricity infrastructure would strengthen the foundations for business expansion, employment and economic growth.

The Kankia substations comprise two 60 MVA, 132/33 kilovolt (kV) facilities designed to strengthen the transmission network serving Katsina State and neighbouring areas.

Tegbe said the infrastructure would improve the network’s ability to distribute available electricity, supporting commercial activities and household welfare.

He also urged residents to protect the facilities against vandalism and other activities that could disrupt electricity infrastructure, asking them to report suspicious activities to TCN or security agencies.

Katsina State Governor, Dikko Umaru Radda, described the project as a significant investment in the state’s electricity infrastructure.

Radda stated that improved electricity supply could support industrial development, economic growth and public service delivery.

He further commended the President, the Federal Ministry of Power and TCN for completing the project.

It would be noted that the latest projects come amid a broader government’s drive to address bottlenecks in Nigeria’s electricity transmission network, which has constrained the amount of electricity that can be delivered to distribution companies and end users.

Oil & Energy

NBTI Unveils $600m Investment Pipeline Innovation

Published

6 days ago

October 26, 2026

The Tide

The National Board for Technology Incubation (NBTI) has unveiled an investment and development-finance pipeline exceeding $600 million, alongside a proposed solar energy programme targeting one million micro and small businesses across Nigeria.

The Director-General, NBTI, Dr Kazeem Raji, disclosed this while presenting the outcomes of the 2026 NextGen Innovation Challenge at a World Press Conference, Abuja.

Raji said the investment pipeline comprised a proposed $500m solar energy programme for universities and polytechnics, which would be developed in partnership with Gigawatt Global, and a $100m financing opportunity linked to the Tinubu Light Initiative under a memorandum of understanding with Financial Innovation for Impact, UK, also known as Cambridge Investors.

He, however, clarified that the funds had not been fully secured or disbursed, stressing that their realisation would depend on due diligence, financing arrangements, contractual commitments, regulatory approvals and implementation requirements.

“These figures represent proposed investment and financing opportunities and should not be interpreted as $600m already received, disbursed or fully deployed in Nigeria,” he said.

According to Raji, the initiative was designed to connect Nigerian innovators with international investors, business leaders and development partners to accelerate the commercialisation of indigenous technologies.

He said the challenge attracted 298 Nigerian innovators from all 36 states and the Federal Capital Territory, up from 105 participants in 2025.

The innovations showcased covered artificial intelligence, robotics, agriculture, healthcare, education, renewable energy, telecommunications, digital technology, enterprise software, 3D printing and advanced manufacturing.

“Our message is straightforward: Nigeria’s innovators deserve visibility, our enterprises deserve opportunities to grow, and our technologies deserve pathways to the marketplace,” Raji said.

He added that NBTI’s priority was to move beyond showcasing ideas to helping innovators develop commercially viable products, establish sustainable businesses and create jobs.

The proposed Tinubu Light Initiative is expected to support one million micro and small businesses through access to solar energy solutions, with a proposed target of training and deploying 10,000 field marketers and creating 50,000 direct youth employment opportunities.

The initiative also targets N30bn in blended financing for its first phase and estimates annual economic benefits of about N12bn, subject to its underlying assumptions and implementation outcomes.

Raji said the programme was conceived to address the energy challenges facing small businesses, including high operating costs associated with unreliable electricity and dependence on petrol and diesel generators.

Tailors, barbers, hairdressers, pharmacies, food vendors, neighbourhood retailers, printing businesses and digital-service providers, he stated, are among the potential beneficiaries.

He said the initiative also envisaged opportunities to promote business formalisation and financial inclusion, particularly among informal enterprises, where appropriate arrangements could be established.

However, the NBTI director-general acknowledged that the programme’s success would depend on sound financing, transparent beneficiary selection, reliable equipment, maintenance arrangements and measurable delivery.

“Our vision is to make clean-energy access an enabler of enterprise development, not merely an infrastructure intervention,” he said.