The Chief Executive Officer of Dangote Refinery, David Bird, has raised concerns over a significant shortfall in crude oil supply under the Federal Government’s crude-for-naira arrangement.


Speaking during an interview on ARISE News on Wednesday, Bird revealed that the refinery currently receives only about five cargoes of crude oil monthly, far below the expected 13 to 15 cargoes agreed under the deal.


He explained that the gap has hindered the refinery’s ability to fully optimise local crude supply, despite existing contractual commitments.


“Under the agreement, we should be receiving between 13 and 15 cargoes per month—volumes sufficient to meet Nigeria’s domestic fuel demand. However, we are currently getting only five cargoes, which falls significantly short of the agreed supply,” he said.


David Bird, Managing Director/Chief Executive Officer of Dangote Petroleum Refinery, David Bird. Credit: enterpriseceo.africa


According to Bird, the shortfall has forced the refinery to source its preferred Nigerian crude grades from the international market at higher costs, leading to financial losses for the country.


“The difference between the purchase price and the premium we now pay represents value that is effectively lost to international traders,” he added.


Clarifying the intent of the crude-for-naira policy, Bird stressed that the initiative was designed to stabilise Nigeria’s foreign exchange market rather than offer financial advantages to the refinery, noting that crude is still purchased at global benchmark prices.


“The crude-for-naira programme is not meant to benefit Dangote Refinery. It is aimed at strengthening foreign exchange resilience. Processing domestic crude in local currency is ultimately in the country’s best interest,” he said.


Despite the supply challenges, Bird disclosed that the refinery is currently operating at its full installed capacity of 650,000 barrels per day, supplying both domestic and regional markets.


He also pointed to rising global oil market disruptions—particularly tensions in the Middle East—as factors driving up operational costs, including freight, insurance, and logistics.


Bird emphasised that fuel pricing remains tied to international market dynamics, as the refinery operates without subsidies or discounted crude inputs.


He concluded by calling for improved crude allocation and long-term strategic planning, including the development of national reserves, to enhance supply chain resilience in Nigeria’s oil sector.