By DAYO ADESULU
The Managing Director of Dangote Petroleum Refinery, David Bird, has assured Nigerians that the country will continue to enjoy stable fuel supply despite the ongoing global oil shortage and rising crude prices.
Speaking during a media interaction, Bird said the Dangote Refinery fuel supply assurance demonstrates Nigeria’s growing energy independence. He explained that while several countries that depend heavily on imported fuel are already facing panic buying and rationing, Nigeria now has a strategic advantage due to its local refining capacity.
According to him, the refinery remains committed to maintaining uninterrupted fuel supply across Nigeria even as geopolitical tensions in the Middle East continue to disrupt global energy markets.
Bird stressed that the refinery is determined to ensure Nigerians no longer experience the severe fuel shortages that once plagued the country.
Global Oil Shock Pushes Crude Prices to Nearly $120
Bird highlighted how quickly the global oil market has shifted, creating pressure across the international energy supply chain.
“Just a week ago, oil was trading in the mid-$60 range, and it has now climbed to nearly $120 per barrel,” he said.
The sudden surge in crude prices, he noted, has triggered a ripple effect across the global oil industry. Freight rates have increased sharply, while insurance premiums for shipping crude and refined products have also surged.
These developments, Bird explained, have created significant cost pressures for refineries and fuel suppliers around the world.
However, he emphasised that Nigeria’s situation has changed fundamentally due to the presence of the Dangote Refinery.
Domestic Refining Gives Nigeria Strategic Advantage
Bird explained that the Dangote Refinery fuel supply assurance stems from Nigeria’s new domestic refining capacity, which provides a level of supply security the country previously lacked.
In the past, Nigeria depended almost entirely on imported petroleum products. As a result, any disruption in global supply chains often translated into nationwide fuel shortages.
Today, the situation is different.
“What would be worse than $120 oil is no oil,” Bird said.
He revealed that several countries with large refining industries have already begun restricting exports of refined petroleum products in order to protect their domestic markets during the ongoing supply shock.
Such moves have worsened the global shortage, particularly for countries that rely solely on imports.
Nigeria, however, now has the ability to refine its own crude domestically.
NNPCL Crude Supply Key to Refinery Operations
Bird said the refinery’s ability to maintain stable supply largely depends on consistent crude oil delivery from the Nigerian government through Nigerian National Petroleum Company Limited.
As long as the refinery continues receiving Nigerian crude, he said, it will remain capable of supplying the domestic market.
“With government support and steady access to domestic crude, Dangote Refinery will continue to meet all of Nigeria’s refined fuel requirements,” Bird assured.
He added that cooperation between the refinery and government institutions remains crucial for sustaining Nigeria’s energy stability.
Refinery Producing Up to 55 Million Litres of Petrol Daily
Bird revealed that the refinery is currently operating at its full nameplate capacity of approximately 650,000 barrels per day.
This production level places the facility among the largest single-train refineries in the world.
At this capacity, the refinery can produce between 50 million and 55 million litres of petrol daily. If necessary, Bird said the refinery can even increase output furtherthrough blending operations.
Nigeria’s daily petrol consumption, by comparison, stands at roughly 35 million litres.
This means the refinery has enough capacity not only to meet domestic demand but also to create surplus supply.
Priority Supply for Nigerian Market
Bird said the refinery’s immediate priority remains ensuring stable fuel availability for Nigerians.
He stressed that the company is focused on guaranteeing what he described as “fuel abundance” rather than scarcity.
“We will ensure that Nigeria enjoys fuel abundance, not fuel scarcity,” he said.
The assurance comes at a time when many countries are experiencing supply disruptions due to the global energy crisis.
Industry analysts say Nigeria’s ability to refine large volumes of petroleum locally could significantly reduce the risk of future fuel shortages.
Global Market Forces Still Affect Fuel Prices
Despite the improved supply outlook, Bird cautioned that fuel prices in Nigeria will still reflect global market realities.
He explained that the crude oil processed by the refinery is purchased at international benchmark prices, even under the government’s crude-for-naira arrangement.
“Pricing is determined largely by global commodity markets,” he said.
Therefore, any decision to cushion the impact of rising fuel prices on Nigerians would depend on government policy interventions.
Refinery Performance Improving After Optimisation
Bird also disclosed that the refinery has improved operational performance following maintenance and optimisation activities earlier in the year.
The facility, which began sustained operations in early 2024, has gradually increased efficiency while stabilising production.
According to him, ongoing improvements have strengthened the refinery’s ability to meet Nigeria’s growing energy demand.
For many observers, the Dangote Refinery fuel supply assurance signals a major turning point in Nigeria’s long struggle with fuel scarcity.
If current production levels are sustained, analysts believe the refinery could not only secure domestic supply but also position Nigeria as a major exporter of refined petroleum products in Africa.
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