Dangote Refinery Boosts Fuel Exports From 650,000-bpd Plant as Crude Shortages and FX Strains Bite
Updated
Updated · Business Insider Africa · Jul 22
Dangote Refinery Boosts Fuel Exports From 650,000-bpd Plant as Crude Shortages and FX Strains Bite
3 articles · Updated · Business Insider Africa · Jul 22
Summary
Dangote’s 650,000-barrels-per-day refinery is exporting more refined fuel because it is receiving too little crude under Nigeria’s naira-for-crude arrangement, according to a senior company executive.
Selling fuel domestically in naira has left the refinery short of U.S. dollars needed to pay international suppliers, pushing it to rely more on export sales to earn foreign currency.
Global crude costs have added pressure: benchmark Brent was cited at $89.43 a barrel, with WTI at $82.83, raising feedstock costs as the plant buys more crude abroad to keep running at full capacity.
The shift highlights a broader strain in Nigeria’s effort to support local refining with local-currency crude sales while the refinery still depends on hard currency and imported crude to sustain operations.