Dangote Refinery Receives Only 5 Crude Cargos Monthly Amid Crude-for-Naira Shortfall
The Chief Executive Officer of the Dangote Refinery, David Bird, has raised alarms over a significant shortfall in crude oil allocations under the Federal Government’s Crude-for-Naira programme. The refinery, Africa’s largest with a capacity of 650,000 barrels per day, is currently receiving only five cargos per month, far below the agreed 13 to 15 cargos, a gap that is affecting its ability to meet Nigeria’s domestic fuel demand.
Speaking on Arise Television, Bird clarified misconceptions about the programme, stressing that it is not a subsidy or discounted supply initiative. “This is a commercial arrangement, and we pay full international benchmark prices for the crude supplied,” he explained. Bird emphasized the need for transparency in the allocation methodology to ensure that the programme achieves its intended benefits for domestic refining.
The Crude-for-Naira initiative was launched to allow domestic oil transactions in naira instead of dollars, aiming to reduce foreign exchange pressures while strengthening local refining capacity. However, Bird noted that operational challenges, such as crude volume shortfalls and grade mismatches, have occasionally disrupted Dangote Refinery’s planned throughput. He disclosed that paying over $18 per barrel premium for certain Nigerian crude grades further adds financial pressure.
Currently, 30–40% of the refinery’s crude slate comes from international sources, reflecting its flexibility as a merchant refinery. But receiving only five cargos instead of the full allocation compromises efficiency and limits the refinery’s ability to supply domestic fuel consistently. Bird called on regulators to enforce equitable allocation and ensure that domestic refiners can operate competitively under fair market conditions.
Dangote Refinery remains committed to supporting Nigeria’s energy security and reducing import dependence. Bird reiterated that the facility is ready to compete in the petroleum market under import-parity pricing, provided the allocation of crude under the Crude-for-Naira programme is transparent and consistent, allowing the refinery to process the preferred crude grades necessary for optimal operation.
source: nairametrics