By Emmanuel Enebeli
WARRI/Nigeria: The Chief Executive Officer of Dangote Refinery, Mr. David Bird, has raised concerns over inadequate crude supply allocations and rising global cost pressures, warning that these challenges are impacting the refinery’s ability to fully meet Nigeria’s domestic fuel demand.
Speaking during an interview on Arise Morning Show on Wednesday, Bird disclosed that while the refinery is currently operating at full capacity of 650,000 barrels per day, it is not receiving sufficient crude supply under the Federal Government’s Crude-for-Naira arrangement.
According to him, the refinery should be receiving between 13 and 15 cargoes of crude monthly under the agreement, but is currently allocated only about five cargoes, a shortfall he described as significant.
“We are asking for transparency in the allocation methodology,” Bird said, noting that both volume and quality of crude supplied have fallen below expectations. “Our hardware is designed for specific crude grades, but often we do not receive our preferred allocations.”
He further revealed that the refinery has been forced to source Nigerian crude from international markets at a premium exceeding $18 per barrel, despite those same grades being produced domestically.
“That premium represents value leakage from Nigeria to international traders, which we believe is unnecessary,” he stated.
Clarifying misconceptions around the Crude-for-Naira policy, Bird emphasized that the arrangement is neither a subsidy nor a discount scheme, but a mechanism designed to stabilize Nigeria’s foreign exchange by enabling transactions in local currency.
“All crude is purchased at full international benchmark pricing. The benefit is macroeconomic — it reduces pressure on foreign exchange, not a financial advantage to the refinery,” he explained.
On fuel pricing, the Dangote Refinery boss attributed recent increases in the pump price of Premium Motor Spirit (PMS) to global market forces, particularly the ongoing Middle East crisis, which has driven up crude prices, freight rates, and insurance costs.
“As a merchant refinery, we are fully exposed to international market dynamics. There is no subsidy on our inputs, and we are seeing cost increases across the entire value chain,” Bird said.
He, however, assured Nigerians that the refinery is committed to maintaining price stability within commercially viable limits, recalling that prices were held steady at ₦699 per litre for six weeks during the festive period despite fluctuations in crude prices.
Bird described the current situation as a broader “cost-of-living crisis” driven by global energy shocks, noting that the impact extends beyond fuel to sectors such as agriculture, power generation, and transportation.
He warned that even if geopolitical tensions ease immediately, the global energy market would continue to experience disruptions due to lag effects in supply chains.
“This is not just about petrol. It affects LNG supply, electricity generation, fertilizer production, and food systems globally,” he said.
Despite the challenges, Bird maintained that Nigeria remains in a relatively strong position due to its domestic crude resources, refining capacity, and growing petrochemical and gas infrastructure.
“What is worse than $120 oil is no oil at all. Nigeria is fortunate to have both the resource and the capacity to refine it locally,” he added.
On policy direction, the Dangote Refinery CEO called on the Federal Government to adopt a holistic review of regulatory costs and consider strategic interventions to reduce the overall cost of doing business in the country.
He also suggested that Nigeria could explore long-term measures such as building strategic reserves to cushion future global shocks, stressing that governments must begin to “think the unthinkable” in an increasingly volatile global energy landscape.
Addressing speculation about a potential stock market listing, Bird disclosed that the refinery’s founder, Aliko Dangote, envisions a widely subscribed public offering that would allow Nigerians and Africans to take ownership of the landmark project.
“This is intended to be a people’s IPO — a continent-building opportunity that many can participate in,” he said.
As global uncertainties persist, Bird reiterated the refinery’s commitment to efficiency, resilience, and sustained supply, while urging greater collaboration between government and industry to secure Nigeria’s energy future.
