FG Addresses Dangote Refinery's Crude Oil Supply Issues

The Federal Government has addressed the crude oil supply crisis faced by the Dangote Refinery, stating that part of its oil production is sold in advance, which contributes to the refinery's persistent shortage. Sunday Dare, the Special Adviser to President Bola Ahmed Tinubu on Media and Public Communications, made this disclosure during an appearance on Trust TV’s 30 Minutes programme with Mannir Dan-Ali.

He noted that he does not have specific figures for the quantity of crude oil sold ahead of time. The naira-for-crude policy, introduced in 2024, was designed to allow domestic refineries to purchase crude oil in naira, aiming to alleviate foreign exchange pressures and bolster local refining capacity.

However, the Dangote Refinery has reported that the crude supplied under this initiative is insufficient for its operations. In response to these challenges, the refinery began pricing some locally sold petroleum products in dollars.

Dare emphasized the government's commitment to supporting local refining and acknowledged that the refinery still requires government assistance to secure adequate crude supplies.