The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) says the Nigerian National Petroleum Company Limited (NNPC) is finding it difficult to supply crude to the Dangote Refinery because a significant portion of Nigeria’s crude production had been pledged as collateral for a loan obtained under former President Muhammadu Buhari.

PENGASSAN President, Festus Osifo, disclosed this during a Channels TV interview monitored on Thursday. He explained that the Buhari administration took a loan from Afrexim Bank and tied some crude volumes to its repayment, limiting what NNPC can allocate to the Dangote plant.

Osifo also highlighted an ongoing price dispute. According to him, International Oil Companies (IOCs) demanded premium payments before supplying crude to Dangote Refinery, contributing to earlier supply delays.

He added that Dangote should have initiated crude-supply negotiations years before commencing production rather than only months prior.

On why marketers are not buying PMS directly from the refinery, Osifo said there is a pricing gap. NNPC sometimes buys PMS at around N950 per litre and sells to independent marketers at about N700, allowing them access to cheaper fuel.

Major marketers buying directly from Dangote would need to sell above N1,000 per litre, making NNPC the more attractive option.

“Independent marketers prefer NNPC because of the lower prices,” Osifo said.