See why NNPC declared state of emergency as Dangote Refinery date to supply fuel nears

• NNPC Limited has declared a state of emergency on crude oil production and will embark on a mission to address the challenges
• The oil firm's decision comes amid complaints from Dangote Refinery about low crude supply for production
• Nigeria is also struggling to meet its production quota of 1.5 million barrels of oil output set by OPEC

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigerian National Petroleum Company Limited (NNPC Ltd) has declared a state of emergency on crude oil production.

Speaking at the ongoing 2024 Nigeria Oil and Gas (NOG) Energy Week in Abuja on Tuesday, NNPC Ltd's Group Chief Executive Officer, Mele Kyari, declared a decisive move to address forces and challenges hindering crude oil production in the country.

NNPC has declared a state of emergency on crude oil production. Photo credit: Aaron M. Sprecher
Source: Getty Images

According to the NNPC Limited boss, Nigeria can conveniently produce two million barrels of crude oil daily without deploying new rigs.

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His words

"We've made the decision to stop talking. We're now at war with the challenges impacting our crude oil production. This is a definitive declaration of war."We have the necessary tools. We know our targets and what needs to be done at the asset level. Our partners are involved, and together, we'll address and improve the situation."

NNPC wants to increase production

Kyari highlighted delays in procurement processes as a significant hurdle and called for swift action to streamline operations and enhance efficiency across assets.

The NNPC Ltd CEO outlined medium to long-term strategies, including replacing outdated crude oil pipelines and introducing a rig-sharing initiative with partners., Punch reports.

He noted"

"These measures are intended to sustainably boost production levels and reduce costs in line with global standards."

Furthermore, Kyari reaffirmed NNPC Ltd's commitment to investing in critical midstream gas infrastructure such as the Obiafu-Obrikom-Oben (OB3) and Ajaokuta-Kaduna-Kano gas pipelines.

He believes the projects are pivotal for enhancing domestic gas production, supporting power generation, industrial growth, and overall economic development in Nigeria.

Haitham Al Ghais, Secretary-General of the Organisation of Petroleum Exporting Countries (OPEC), was also at the event and underscored the continued importance of oil and gas in the global energy mix, with oil demand expected to reach 116 million barrels per day by 2045.

Dangote Refinery announces fresh date to commence fuel supply

Earlier, Legit.ng reported that Dangote Refinery has rescheduled the commencement of Premium Motor Spirit (fuel) supply to the Nigerian market to July 10–15, 2025.

The President of Dangote Group, Aliko Dangote, revealed this during a visit by the Governor of Lagos State, Babajide Sanwo-Olu, to the refinery.

Dangote refinery has consistently complained about the challenges of sourcing crude from Nigeria, and had to rely on importation.

Source: Legit.ng