Dangote Refinery CEO Hails Naira-for-Crude Deal as Successful, But Reliance on Imports Persists
The CEO of Dangote Refinery, David Bird, has described the Nigerian government’s Naira-for-Crude supply agreement with the facility as “incredibly successful,” while acknowledging that the plant still imports the majority of its crude oil feedstock.
Speaking at a news conference on Wednesday, Bird stated that the Nigerian National Petroleum Company (NNPC) currently supplies between 35% and 40% of the refinery’s crude requirements. The Naira-for-Crude deal itself accounts for approximately 30% to 35% of the total supply. He noted that Aliko Dangote, President of Dangote Group, is in continuous discussions with NNPC to secure a higher crude allocation for the 650,000-barrel-per-day plant.
“We think it is incredibly successful. We appreciate that government support,” Bird said, emphasizing the refinery’s operational dependence on imported intermediate feedstocks and components, not finished products. “I can guarantee you we are not importing finished products. I am a refinery. I have no interest in importing finished products.”
The Naira-for-Crude initiative, launched in October 2024, allows the refinery to purchase crude oil from NNPC in naira rather than dollars, a move designed to lower production costs and conserve foreign exchange. The program faced operational hurdles in early 2025 but was declared indefinite by the federal government in April.
Despite this localized crude supply arrangement, the refinery’s product pricing remains exposed to global market dynamics. Recent weeks have seen Dangote Refinery increase its petrol “gantry” prices, contributing to a nationwide rise in retail fuel costs to between N839 and N905 per liter. This development underscores how international crude price fluctuations continue to influence domestic fuel costs, even with a major domestic refinery in operation.
The comments highlight a transitional phase for Nigeria’s refining sector. While the strategic partnership with NNPC is viewed positively, the refinery’s full operational independence is still constrained by its need for significant crude imports and the persistent impact of global oil prices on the local market. The ongoing negotiations for increased crude allocation are critical to the refinery’s goal of maximizing local production and fully stabilizing the downstream sector.
