- Warri and Port Harcourt Refineries’ Revival Sparks Crude Allocation Review
- Naira-for-Crude Initiative Aims to Bolster Downstream Competition
The Federal Government is considering reducing its daily crude oil allocation to the Dangote Petroleum Refinery, currently set at 300,000 barrels per day. This adjustment, sources reveal, is contingent on an increase in Nigeria’s overall crude oil production.
The potential cut is part of a broader plan under the government’s naira-for-crude initiative, especially with the recent operational resumption of the Warri and Port Harcourt refineries. Combined, these refineries, managed by the Nigerian National Petroleum Company Limited (NNPCL), now produce about 135,000 barrels per day following years of inactivity.
Government insiders disclosed that the decision to redistribute crude oil aims to ensure all operational refineries, including Dangote’s, receive adequate supplies. This move is expected to foster healthy competition in the downstream sector, ensuring efficient fuel production and distribution.
Before the naira-for-crude initiative, approximately 445,000 barrels of crude were allocated daily to domestic refineries under NNPCL’s management. However, the shift in policy signals a renewed focus on equitable crude supply to support multiple players in the refining industry.
The Dangote Refinery, Africa’s largest, remains a critical part of Nigeria’s drive for energy self-sufficiency. However, with the revival of Warri and Port Harcourt plants, the government appears poised to balance supply and demand to maximize refining capacity across all facilities.
Industry analysts believe this development could reshape Nigeria’s downstream sector, driving efficiency while reducing the nation’s reliance on fuel imports.
