Dangote Refinery Receives Only Five Crude Cargoes Monthly

David Bird, the CEO of Dangote Refinery, disclosed during an interview that the refinery is currently receiving only five crude oil cargoes monthly, significantly below the expected 13 to 15 cargoes as per their agreement with the federal government. This shortfall is affecting the refinery's ability to fully optimize local crude supplies, despite existing agreements.

The refinery's operational capacity is 650,000 barrels per day, but the inadequate supply hampers its performance against pre-agreed volumes. Bird noted that the refinery prefers Nigerian crude grades but faces higher costs due to the international market's pricing.

He criticized the crude naira policy, stating it does not provide financial advantages to the refinery and is fundamentally misunderstood. Additionally, he highlighted that global oil market disruptions, particularly tensions in the Middle East, are increasing operational costs across the refinery's value chain.

Bird called for improved crude allocation and a long-term strategic plan to strengthen the supply chain resilience in Nigeria's oil sector.