Nigeria no get enough crude oil wey free to meet full need of Aliko Dangote refinery, Finance Minister Taiwo Oyedele talk. E mention say di supply challenge dey show as Africa largest refining complex dey prepare to double capacity. The minister talk say government no fit currently allocate 700,000 barrels a day to di refinery, despite efforts to increase production and release barrels tied to existing commitments. His comments expose contrast wey often lost for Nigeria oil debate: total production bigger pass volume wey government own and fit supply to domestic refiners.
Di refinery fit buy crude from other producers and international markets. Di shortage Oyedele describe concern available domestic allocations, no be announcement say plant don run out of feedstock. Oyedele talk say, ‘We no get enough to service Dangote,’ during Channels Television Politics Today programme on 9 October. He explain say production-sharing arrangements, costs and other obligations reduce oil available to government.
Under Nigeria production-sharing contracts and joint ventures, oil dey allocated between state and commercial partners. Production costs and royalties must also dey accounted for before determining government available share. Oyedele talk say earlier borrowing secured against future oil production don further constrain supply. Government don renegotiate some commitments and reduce theft to free additional barrels, but e no fit yet meet every domestic refiner need.
He also note say importing crude no be solely response to insufficient Nigerian supply. Different grades fit help refinery achieve preferred product mix and processing economics. According to Oyedele, Dangote would still need some heavier crude even if sufficient Nigerian sweet crude dey available. He no disclose refinery current shortfall or exact volume government fit allocate.
Expansion raise stakes. Dangote own facilities information list current crude-distillation capacity at 700,000 barrels a day, with expansion pathway to 1.4 million barrels a day. Proposed doubling would increase importance of dependable supplies from several sources. E also deepen refinery role in supplying fuel to Nigeria and export markets across Africa.
Company don already build flexibility into sourcing. Prospectus disclose say refinery don process 36 crude grades from Africa, South America, United States and Middle East by 30 June 2026. Prospectus nevertheless warn say supply arrangements no fit guarantee uninterrupted deliveries, making crude availability material issue for both production and expansion.
Payment reform no fit create additional barrels. Nigeria introduce domestic-currency crude-sales arrangement in October 2024 to support local refining and reduce foreign-exchange pressure. Finance ministry original implementation documents confirm say programme intended to change how qualifying crude purchases dey paid for. Oyedele talk say arrangement don improve stability, but payment reform no fit resolve shortage of available barrels by itself.
