Fesochukwu Jason
The Chief Executive Officer of Dangote Refinery, David Bird, has highlighted concerns over crude oil allocation under Nigeria’s crude-for-naira arrangement, noting that supply levels remain below agreed expectations.
Speaking during an interview on ARISE News, Bird explained that the refinery is currently receiving significantly fewer crude shipments than required under existing agreements, a situation he said is affecting operational planning and efficiency.
He noted that while the framework anticipates monthly deliveries in the range of 13 to 15 cargoes to support optimal domestic production, the refinery has been receiving an average of about five cargoes, indicating a shortfall in supply commitments.
According to him, the crude-for-naira initiative was introduced primarily to support Nigeria’s foreign exchange stability by encouraging local transactions in domestic currency, rather than to provide commercial advantage to any private entity.
Bird emphasised that the refinery continues to purchase crude oil at international benchmark prices, clarifying that the policy is intended to strengthen macroeconomic resilience and reduce pressure on foreign exchange demand within the country.
Despite the supply limitations, he stated that the facility is currently operating at its installed capacity of 650,000 barrels per day, supplying petroleum products to both domestic consumers and regional markets.
He also noted that global market dynamics, including geopolitical tensions in regions such as the Middle East, have contributed to increased costs across shipping, insurance, and logistics, further influencing the broader energy value chain.
Bird called for more consistent crude allocation and improved coordination within Nigeria’s oil supply system, stressing the importance of long-term planning mechanisms such as strategic reserves to enhance stability and ensure sustainable refinery operations.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.