Crude Oil Refinery
Dangote Petroleum Refinery says the Federal Government’s Naira-for-Crude policy has helped stabilise the naira and should be expanded to protect Nigeria’s economy.
The Managing Director of Dangote Refinery Plc, David Bird, said this on Wednesday during a press briefing at the refinery complex in Lagos.
Bird described the policy as clear evidence of government support for local refining, noting that 30 to 40 per cent of the refinery’s crude oil supply currently comes through the naira-based arrangement with the Nigerian National Petroleum Company Limited (NNPC).
According to him, the refinery holds monthly talks with NNPC to agree on crude grades, as Nigerian crude varies in quality.
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He said about 30 per cent of crude is sourced through the Naira-for-Crude programme, another 30 per cent from Nigerian crude bought on the spot market, while 40 per cent comes from international suppliers.
Despite this mix, Bird said the policy has made a strong impact.
“Even at the current level, it has contributed significantly to the stabilisation of the naira,” he said, adding that the refinery can take more crude if allocations are increased.
Bird also warned that global oil market uncertainties make it important for Nigeria to prioritise domestic crude supply, stressing that local refining helps secure the country against external shocks.
The Naira-for-Crude policy, introduced in October 2024, allows local refineries to buy crude oil from NNPC in naira instead of dollars, easing pressure on foreign exchange and supporting local production.
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