As Nigeria pushes for greater energy independence, the Dangote Refinery is adjusting its strategy to maintain steady operations.
Indeed, a lot is resting on the cost of petrol in the nation that is reforming its economy for a better economic future.
The refinery knows its role in reducing the country’s reliance on imported fuel. As a result, it is now increasing crude imports to keep up with production demands.
In October of 2024, an agreement was introduced by the government that will enable local refineries to buy crude in naira.
The aim is to strengthen the currency and cut fuel import costs. But that is not happening yet, as a result of government bureaucracy and huddles by a few corrupt individuals.
Dangote Refinery cannot wait for an unspecific time.
Diverse Sourcing Strategy
According to Bloomberg, the refinery has already secured over three million barrels of American crude this month.
In addition, it recently purchased Angola’s Pazflor grade and Algeria’s Saharan Blend from Glencore Plc.
Read Also; Dangote, Others In Tears As NNPC Shuns Naira For Crude Agreement
Analysts at Energy Aspects Ltd. report that crude deliveries to the refinery have climbed to 450,000 barrels per day, surpassing the 380,000 recorded in January and February.
Rising Refinery Activity
Highlighting the refinery’s increased activity, senior refinery analyst, Randy Hurburun, stated: “Our satellite monitoring shows that the refinery is processing more crude, indicating a rise in output”.
Meanwhile, the Nigerian National Petroleum Company Limited (NNPC) has initiated fresh negotiations with Dangote Refinery to extend the Naira-for-Crude agreement before it expires on March 31, 2025.
Addressing speculation, NNPC clarified that it had not suspended the deal until 2030, despite forward-selling its crude allocations.
As discussions progress, the refinery remains committed to securing crude supplies and maintaining steady production.
At the same time, the government continues refining its policies to balance economic stability with energy security.
