Dangote Critiques IOCs for Not Selling Crude Directly

Aliko Dangote, the Chief Executive of Dangote Industries, lamented the unwillingness of international oil companies (IOCs) to sell crude oil directly to his refinery, which leads to higher repurchase costs and broader economic implications. Speaking at an event with UN Deputy Secretary-General Amina Mohammed in Ibeju Lekki, Lagos, he noted that despite improvements, the supply of crude oil remains a challenge.

Dangote commended the Nigerian National Petroleum Company Limited (NNPCL) for increasing crude deliveries to his refinery, which rose to ten cargoes in March. He emphasized the need for increased access to crude oil at domestic prices to help moderate fuel costs and enhance long-term energy and food security across Africa.

Economist Bismark Rewan proposed a model where the government supplies crude oil directly to refineries to control prices and reduce costs for consumers. Analyst Marcel Okek explained the complexities of IOCs operating under global arrangements, which complicate local market dynamics.