Chairman of the House of Representatives Committee on Petroleum Resources (Downstream), Ikenga Ugochinyere, has alleged that Nigerian crude oil is being sold to Dangote Refinery and other local refineries through intermediaries operating from London in the United Kingdom and Dubai in the United Arab Emirates.
He made this known during a press briefing on Thursday, where he also warned that the 650,000-barrel-per-day refinery could face a potential shortage of crude supply.
According to him, Dangote Refinery pays an additional $18 on every $100 barrel of Nigerian crude purchased through these middlemen.
He cautioned that Nigeria could soon experience shortages of fuel and diesel if urgent steps are not taken to resolve the crude supply challenges affecting the $20 billion Dangote Refinery.
“Crude oil produced in Nigeria is being sold to our refineries through middlemen based in London and Dubai, who add no value but collect huge fees.
“For every barrel priced at $100, refineries pay $118, with the additional $18 going to intermediaries,” Ugochinyere alleged.
His remarks come at a time when both Nigeria and the global economy are grappling with rising crude oil prices triggered by escalating tensions involving the US, Israel, and Iran.
The conflict has intensified in recent days, with attacks on key oil infrastructure in the Gulf region, alongside the ongoing disruption linked to the blockage of the Strait of Hormuz.
On Thursday, Iran bombed the Mina Al-Ahmadi oil refinery in Kuwait, following a similar strike the previous day on the Laffan Liquefied Natural Gas facility in neighbouring Qatar.
These developments came after Israel carried out coordinated strikes on Iran’s South Pars offshore natural gas field.
The escalating conflict in the Middle East has driven crude oil prices higher, with Brent reaching $110 per barrel and West Texas Intermediate climbing to $96.78 as of Friday morning.
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