As concerns mount over the lack of domestic crude oil supply to the Dangote Petroleum Refinery and other indigenous refiners, the Independent Petroleum Producers Group (IPPG) has called on President Bola Tinubu to consider declaring a state of emergency on crude oil production in Nigeria. The lingering crisis associated with the shortage of domestic crude oil threatens the industry’s stability and the implementation of the 2024 budget. IPPG, an association of Nigerian indigenous upstream exploration production companies, emphasizes the need for collaboration and commitment between regulators and industry operators to address this critical issue.
Nigeria’s oil production has declined significantly this year, falling from over 1.4 million barrels per day (excluding condensates) in January to about 1.2 million barrels per day in April. Oil producers believe that Nigeria should be producing around 2 million barrels per day to meet local refinery demands and exports. Dangote Refinery and modular refinery operators continue to express concerns about poor crude oil supply from International Oil Companies (IOCs) and the Nigerian National Petroleum Corporation (NNPC). The situation calls for urgent action to unlock incremental production and ensure the industry’s long-term sustainability.
The IPPG Chairman, Abdulrazaq Isa, stressed that Nigeria’s vast hydrocarbon resource base—over 37 billion barrels of proven crude oil reserves and substantial gas reserves—requires immediate attention. He urged collaboration between regulators (NUPRC and NMDPRA) and industry operators (NNPC, OPTS, and IPPG) to address the crisis. Declaring a state of emergency in the oil and gas sector could be a necessary step to unleash the industry’s potential and protect the country’s interests.