The Dangote Petroleum Refinery revealed that the Federal Government is struggling to meet its commitment under the naira-for-crude initiative, a program intended to ease foreign currency pressure. According to Dangote Industries Vice President, Devakumar Edwin, the refinery has received significantly less than the 385,000 barrels per day (bpd) promised by the Nigerian National Petroleum Company Limited (NNPCL), hampering its output.
To bridge the shortfall, Dangote recently purchased two million barrels of U.S. crude, marking a reliance on imports to maintain operations. Edwin highlighted that while four shipments have been delivered, they fall far short of the refinery’s needs. Dangote’s $20 billion facility in Lekki, which is expected to operate at 85% capacity by year-end, requires 650,000 bpd to reach full production.
While the reasons for the shortfall remain unclear, other refineries in Nigeria have also struggled to access crude under the naira-for-crude deal, with ongoing discussions aimed at resolving the issue. Meanwhile, NNPCL has turned to international markets, offering its new Utapate crude grade to overseas buyers.