The Nigerian government is considering reducing its crude oil supply to Dangote Petroleum Refinery. The refinery currently receives 300,000 barrels per day, but this may be lowered unless Nigeria’s oil output increases. This decision is part of the government’s efforts to adjust its naira-for-crude initiative, especially after the recent reopening of the Warri and Port Harcourt refineries.

These two refineries are currently operating at a combined capacity of 135,000 barrels per day. Managed by the Nigerian National Petroleum Company Limited (NNPCL), these plants had been out of operation for years but have now started functioning again.

The reduction in crude oil supply to Dangote’s refinery aims to ensure all refineries have enough crude. This is part of the government’s plan to increase competition in the local fuel market, supported by the naira-for-crude initiative. Before this, NNPCL allocated about 445,000 barrels per day to domestic refineries.

These adjustments are designed to boost local refining capacity and enhance the competitiveness of Nigeria’s fuel production.