Dangote Refinery Faces Crude Shortages Amid Advance Sales

The Presidency, represented by Sunday Dare, Special Adviser to President Bola Ahmed Tinubu on Media and Public Communications, stated that Dangote Refinery is facing crude oil supply shortages due to advance sales of oil production. This situation has limited the volume of crude available for domestic refining, despite the current administration's efforts to increase national production.

Dare mentioned that he did not have exact figures for the quantity of crude sold in advance. The refinery has struggled under the naira-for-crude policy, which was introduced in 2024 to allow domestic refineries to purchase crude oil in naira.

However, Dangote Refinery reported receiving only five cargoes monthly, while it requires 13 to 15 cargoes. The Nigerian National Petroleum Company Limited claimed it allocated all available crude cargoes to the refinery, but actual deliveries were affected by various factors.

The supply issues have also led the refinery to price some products in dollars due to foreign exchange challenges.