The Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals, David Bird, has revealed that the facility is receiving far below its expected crude oil volumes under its supply arrangement with the Federal Government.
Speaking on Arise News, Bird stated that the refinery currently receives about five cargoes of crude oil per month, significantly lower than the 13 to 15 cargoes outlined in the crude-for-naira agreement.
He said the supply gap has limited the refinery’s ability to fully depend on domestic crude, despite the framework designed to support local refining.
According to Bird, the shortfall has forced the refinery to source preferred Nigerian crude grades from international markets at higher costs, increasing overall expenses.
He noted that the difference between local supply expectations and international purchase costs represents value that is effectively lost to external trading markets.
Bird clarified that the crude-for-naira policy was introduced to support foreign exchange stability rather than to offer financial concessions to the refinery, stressing that crude is still purchased at prevailing international benchmark prices.
Despite the constraints, the refinery continues to operate at its full installed capacity of 650,000 barrels per day, supplying products to both local and regional markets.
He added that ongoing geopolitical tensions, particularly in the Middle East, have further increased operational costs across logistics, freight, and insurance.
The CEO emphasised that fuel pricing remains aligned with global market conditions, noting that the refinery does not benefit from subsidies or discounted crude inputs.
He called for improved crude allocation and more strategic coordination to strengthen Nigeria’s energy supply chain, including the development of reserves to mitigate future disruptions.