Nigeria's Finance Minister Confirms Crude Shortage for Dangote

The Federal Government of Nigeria, through Minister of Finance Taiwo Oyedele, announced on Channels Television that there is not enough crude oil to supply Dangote Refinery. Oyedele stated that Nigeria produces 1.8 million barrels of crude oil daily, but this production is shared under various contracts, leaving Nigeria with limited free crude.

He indicated that Nigeria does not have up to 700,000 barrels available for local refiners, including Dangote. Oyedele criticized proposals for a “production subsidy” for the refinery, asserting that those suggesting it do not understand the situation.

He mentioned that the introduction of the Naira for Crude initiative aims to stabilize the market, but current production levels do not allow for sufficient supply. Oyedele expressed hope that as production increases, Nigeria will eventually be able to supply Dangote Refinery and other refiners adequately, aspiring for a future where all crude produced in Nigeria is refined domestically.