The Dangote Petroleum Refinery says it purchases crude oil from the Nigerian government at international market prices despite the country’s domestic refining policy. The Managing Director and Chief Executive Officer of the refinery, David Bird, disclosed this during a media briefing, explaining that the facility operates within global commodity market conditions.
Bird said the refinery remains fully exposed to international pricing even under the government’s crude-for-naira arrangement. He added that the refinery also pays international freight and insurance costs to transport crude oil from export terminals to the plant.
According to the chief executive, Nigerian crude currently accounts for about 30 to 35 percent of the refinery’s feedstock. He explained that the remaining crude supply is sourced from the international market in United States dollars, often through multiple traders before reaching the refinery.
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Bird said the structure of the global oil market contributes to the cost of refining and influences fuel pricing. He acknowledged the financial pressure faced by consumers and stated that the refinery is working to minimise costs across its supply chain while maintaining a stable fuel supply in Nigeria.
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