Dangote Refinery Gets Only Five Crude Cargoes Monthly — CEO

The Chief Executive Officer of the Dangote Petroleum Refinery, David Bird, has raised concerns over a significant shortfall in crude oil supply under the Federal Government’s crude-for-naira arrangement, warning that the gap is affecting operational efficiency.

Speaking during an interview on ARISE News, Bird disclosed that the refinery currently receives only about five crude cargoes monthly, far below the expected 13 to 15 cargoes outlined in the supply agreement.

“What we see under that agreement, we should be getting about 13 to 15 cargoes a month. And that’s what we could process to meet the domestic fuel requirements of Nigeria. Currently, we’re only getting five. So, that’s an underperformance against that pre-agreed volume contract,” he said.

He explained that the shortfall has compelled the refinery to source Nigerian crude grades from international markets at higher prices, increasing costs and creating financial leakages.

“And that value between the purchase price and the premium that we’re now seeing is money that Nigeria is leaking to the international trading community,” Bird added.

Bird clarified that the crude-for-naira policy is often misunderstood, noting that it is not structured to provide financial advantages to the refinery but rather to stabilise the country’s foreign exchange market.

“Just to start on the crude for Naira, crude for Naira is not there to benefit Dangote Refinery. That is a fundamental misunderstanding. The crude for Naira programme is to provide resilience to foreign exchange.

“It is the benefit of the country to process domestic crude in the domestic currency,” he said.

Despite the supply constraints, he stated that the refinery is currently operating at its full installed capacity of 650,000 barrels per day, supplying both domestic and regional markets.

However, he noted that global oil market disruptions—particularly geopolitical tensions in the Middle East—have driven up costs across logistics, freight, and insurance, further squeezing margins.

He emphasised that fuel pricing remains tied to international benchmarks, stressing that the refinery operates without subsidies or discounted crude inputs.

Bird called for improved crude allocation and long-term strategic planning, including the development of national reserves, to strengthen Nigeria’s energy security and supply chain resilience.