Nigeria’s Oil Producers Request NNPC to Use Intervention Crude for Domestic Purposes

Oil Producers Urge NNPCL to Prioritize Domestic Consumption with Intervention Crude.

The Independent Petroleum Producers Group (IPPG) has called on the Nigerian National Petroleum Corporation Limited (NNPCL) to utilize its 445,000 barrels per day intervention crude oil volume to meet domestic demand, as it has done in the past. This move aims to enhance the petroleum value chain within the Nigerian economy, while ensuring adherence to existing laws and obligations.

In a letter to the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, IPPG Chairman Abdulrazak Isa suggested that any national production above NNPCL’s allocated volume should be treated as export volumes, subject to the “willing buyer, willing seller” framework of the international market.

The group argued that refiners would need to export excess products that surpass domestic demand, thereby boosting foreign exchange earnings. IPPG also cautioned against compelling Nigerian authorities to sell crude oil to local refineries, including the Dangote Refinery, emphasizing the need for a market-driven approach.