Korede Abdullah 
Minister of Finance, Taiwo Oyedele
LAGOS, Nigeria – Nigeria currently lacks sufficient uncommitted crude oil to meet the full supply requirements of the Dangote Refinery and other domestic refineries, the Federal Government has said, highlighting a major challenge facing the country’s drive to expand local fuel production.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, made the disclosure during a television interview on Friday, dismissing calls for a production subsidy to help refineries meet domestic demand. “We don’t have enough to service Dangote. Dangote imports crude oil. And I just want us to establish that fact,” Oyedele said.
He explained that although Nigeria’s crude oil production stood at about 1.8 million barrels per day, a substantial portion was committed to joint venture partners, production costs and royalty obligations.
According to the minister, the volume of crude available for additional domestic allocation remains far below what would be required to meet the needs of all local refiners. “The reality is that today we do not have up to 700,000 free crudes to give anyone, including Dangote,” he added.
The comments highlight the difference between Nigeria’s total crude oil production and the volume available for allocation to domestic refineries after existing obligations have been met.
Oyedele said the Federal Government’s naira-for-crude initiative had helped stabilise supply arrangements but stressed that increasing production would be essential to meeting local refining demand more consistently. “As we ramp up production and we free up some barrels, we’ll get to a point where we’ll be able to give Dangote everything he wants and other refiners will be able to get enough,” he said.
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