By Our Correspondent
National News – The Chief Executive Officer of the Dangote Petroleum Refinery, David Bird, has revealed that the refinery is receiving far fewer crude oil shipments than agreed under the Federal Government’s crude-for-naira supply arrangement.
Bird disclosed this during an interview on ARISE News on Wednesday, explaining that the refinery currently receives only five cargoes of crude oil monthly instead of the expected 13 to 15 cargoes.
Bird said the shortfall in crude supply has made it difficult for the refinery to fully optimise local crude resources and meet domestic fuel demand efficiently.
According to him, the crude-for-naira policy was designed by the Federal Government of Nigeria to stabilise the country’s foreign exchange market by allowing domestic crude transactions in naira rather than foreign currency.
Explaining the situation further, Bird noted that the refinery had signed an agreement that should provide between 13 and 15 crude cargoes monthly.
However, only five shipments are currently being delivered, representing a significant underperformance compared to the agreed contract volume.
This supply gap, he said, has forced the refinery to purchase Nigerian crude grades from international traders at higher prices.
According to Bird, the additional cost of buying crude abroad means Nigeria is losing potential revenue to international trading companies.
He stressed that despite the crude-for-naira framework, the refinery still purchases crude oil at international benchmark prices without subsidies or discounts.
The refinery, which has a capacity of about 650,000 barrels per day, is currently operating at full installed capacity while supplying refined petroleum products to Nigeria and other regional markets across Africa.
Bird also pointed to global oil market disruptions, particularly tensions in the Middle East, as factors pushing up operational costs such as freight, insurance and logistics.
These international pressures, he added, continue to influence fuel pricing despite domestic refining efforts.
He therefore called for improved crude allocation policies and stronger long-term planning, including the creation of national crude reserves, to strengthen Nigeria’s oil supply chain and ensure the stability of local refining operations.
