Addressing Crude Shortages at the Dangote Refinery: Legislative Actions to Strengthen Domestic Supply
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The Dangote Petroleum Refinery (DPR), launched in May 2023 with a refining capacity of 650,000 barrels per day, was envisioned to revolutionise Nigeria’s fuel supply by reducing imports and promoting energy self-sufficiency. However, between April and July 2025, the refinery is projected to import approximately 17.65 million barrels of crude, a third of which is sourced from the United States, due to persistent domestic supply shortfalls. The Founder and CEO of Dangote Group, Aliko Dangote, recently confirmed that insufficient crude supply from the Nigerian National Petroleum Corporation (NNPC) and logistical constraints are forcing reliance on foreign crude. Despite existing policies such as the naira-for-crude swap, systemic issues in production and allocation remain unresolved, undermining national energy security and the full operational potential of this $20 billion investment. To address these concerns, the National Assembly Joint Committees on Petroleum Upstream, Midstream and Downstream may wish to: ● Convene a joint public hearing with DPR, NNPC, and relevant ministries to evaluate current crude supply failures and propose corrective strategies; ● Mandate an audit of Nigeria’s crude output, allocation schedules, and supply chain bottlenecks; ● Demand to participate and jointly review the naira-for-crude policy to include enforceable delivery schedules and penalties for non-compliance; ● Establish a Domestic Crude Security Commission to oversee production, transport, and consistent feedstock supply to local refineries. This intervention is critical to realising Nigeria’s fuel independence agenda, stabilising the naira, and ensuring the success of Africa’s largest refinery. Robust legislative oversight and policy reforms may help reposition Nigeria’s energy sector for sustainable growth.