Nigeria Weighs Crude Rule Changes to Cut Refiners' $3-$4 a Barrel Costs
Updated
Updated · Business Insider Africa · Aug 12
Nigeria Weighs Crude Rule Changes to Cut Refiners' $3-$4 a Barrel Costs
3 articles · Updated · Business Insider Africa · Aug 12
Summary
Nigeria is reviewing domestic crude supply and pricing rules this week to improve feedstock access for local refineries, including Dangote, as current arrangements inflate crude costs by $3-$4 a barrel.
More than 90% of allocated domestic crude is now being delivered, up from under 43% in the previous quarter, but refiners and analysts say pricing—not physical availability—still blocks local deals.
Dangote's 650,000-barrel-per-day refinery has increasingly bought imported crude because local supply terms remain difficult, even as it expands exports of refined products.
That reliance on foreign crude strains access to dollars because much of Dangote's fuel is sold domestically in naira, making the proposed reforms central to higher utilisation and Nigeria's refining self-sufficiency push.