Oyedele Reveals Nigeria's Crude Shortfall Amid Subsidy Removal

Taiwo Oyedele, the Minister of Finance and Coordinating Minister of Economy, stated that Nigeria's crude oil production constraints pose a significant challenge to meeting domestic refining needs, despite the removal of the petrol subsidy by President Bola Tinubu in 2023. Oyedele explained that Nigeria does not have enough freely available crude oil to supply the Dangote Refinery and other local refiners, as production costs, royalties, and contractual obligations diminish the volume available to the Federal Government.

He noted that Nigeria currently produces about 1.8 million barrels of crude oil daily, but the government's share is reduced due to production-sharing contracts and joint ventures with oil companies. Oyedele indicated that less than 700,000 barrels of crude oil are freely available for allocation, including to the Dangote Refinery.

He acknowledged that the naira-for-crude policy introduced by the Tinubu administration has provided stability, but the available volumes remain insufficient to meet domestic demand. Oyedele expressed optimism that increased production would eventually meet the needs of domestic processors.