Crude Shortages Threaten Nigeria's Fuel Output, Says CEO

In an interview on Arise Television, David Bird, the CEO of Dangote Refinery, raised alarms about significant crude oil shortages affecting domestic fuel production in Nigeria. He stated that the refinery is currently receiving only five cargoes of crude oil per month, which is substantially below the pre-agreed requirement of 13 to 15 cargoes necessary for full operational capacity.

Bird clarified that there is a widespread misconception regarding the crude naira program, emphasizing that it is not a subsidy scheme but rather an initiative aimed at reducing foreign exchange pressure to support domestic refining. He noted challenges such as crude volume and grade mismatches, which hinder operational efficiency.

The refinery's current sourcing of 30-40 percent of its crude slate internationally demonstrates flexibility, but consistent allocation of Nigerian crude is essential for optimizing throughput. Analysts warn that the crude allocation shortfall could undermine investor confidence in Nigeria's refining sector, with potential implications for energy security.