Nigeria’s ambitious plan to sell crude oil in local currency is falling short of expectations.
Refiners, including the Dangote Oil Refinery, report difficulties in securing adequate supplies under the government’s naira-based crude sale arrangement.
The policy, introduced in July to ease foreign currency constraints, was set to last six months starting in October.
“We need 650,000 barrels per day, but NNPC promised 385,000 bpd and isn’t even delivering that,” said Edwin Devakumar, Dangote refinery’s head.
Despite its potential to rival European refineries, Dangote has struggled to acquire enough crude to achieve optimal operations.
Devakumar criticized the scheme, calling the crude deliveries “peanuts,” though he withheld specific figures on shortfalls.
Currently, Dangote is the only one of eight operational Nigerian refineries benefiting from the naira-denominated crude initiative.
“Most refiners still lack access to crude in naira and are pushing the government for solutions,” said Mathins Obaze of CORAN.
The Nigerian National Petroleum Corporation (NNPC) has not explained the supply shortfall or responded to requests for comment.
In August, Dangote urged the oil regulator to enforce rules compelling oil producers to prioritize local refineries.
With limited progress, Dangote is sourcing internationally, purchasing two million barrels of U.S. crude this week, its first since August.
