The Chief Executive Officer of the Dangote Refinery, David Bird, has revealed that the facility is currently getting significantly less crude oil than expected under its supply agreement with the Federal Government.
Speaking during an interview on Arise News, Bird explained that the refinery receives only about five cargoes of crude oil each month, far below the 13 to 15 cargoes outlined in the crude-for-naira arrangement.
According to him, this shortfall has limited the refinery’s ability to maximise the use of locally sourced crude, despite the existing agreement designed to support domestic refining.
He noted that due to the supply gap, the refinery has been forced to procure Nigerian crude from international traders at higher prices, resulting in financial losses that ultimately affect the country’s economy.
Bird clarified that the crude-for-naira policy is often misunderstood, stressing that it is not intended to give the refinery any special advantage. Instead, he said the policy was introduced to reduce pressure on Nigeria’s foreign exchange by allowing crude transactions in local currency.
Despite these supply challenges, he confirmed that the refinery is operating at its full capacity of about 650,000 barrels per day, supplying petroleum products both within Nigeria and to other markets in the region.
However, he pointed out that rising global tensions—especially in the Middle East—have increased operational costs, including expenses related to shipping, insurance, and logistics.
He also emphasised that fuel prices remain tied to global market dynamics, as the refinery does not benefit from subsidies or discounted crude supply.
Bird called for better crude allocation policies and long-term planning, including the development of strategic reserves, to improve stability in Nigeria’s oil supply chain.