Fuel Price Hike: 47 Government Agencies Collect Money From Us, We Buy Crude Oil Abroad— Dangote Refinery
David Bird, Managing Director of the Dangote Refinery, says the refinery incurs costs from 47 government agencies, with various fees contributing to the final pump price of petrol in Nigeria.
Speaking during a press conference in Lagos on Monday, Bird said the Federal Government still treats the refinery as a customer of last resort, suggesting that the best grades of crude oil are sold to international buyers first.
He called on the government to prioritise local refining amid the current volatility and uncertainty in the global crude oil market.
According to him, Nigeria should prioritise selling certain crude grades to the domestic refining industry.
All countries are being very self-interested. China has banned exports. In fact, many countries with refining industries, such as Thailand and Vietnam, have also banned exports,” he said.
“Other countries with strategic reserves are releasing them, but they will not release them to the open market. They release them to ensure that their domestic industries get preference.”
Bird said Nigeria should adopt a similar approach.
“That is the role the Nigerian government should be considering right now — self-interest. That means ensuring that the domestic refining industry in Nigeria gets access to crude. Abundant access to the right grades of crude. Prioritise the domestic industry.”
He also urged government agencies to review their contributions to the cost of petroleum production.
“All government agencies should examine their contribution to reducing costs in the value chain. We still feel there are many regulatory charges at every step of our processing, whether it is from regulators, the NPA, or NIMASA.”
“We deal with 47 different government agencies, and we incur costs from them.”
He added that each agency should evaluate how it can help reduce the overall cost in the supply chain.
“Most importantly, the role of Nigeria is to look after Nigerians, and that would be by securing ample crude supply for Nigeria’s domestic refining industry.”
Dangote Refinery Imports Exported Nigerian Crude
Bird said the government does not prioritise supplying crude oil to the Dangote Refinery, which increases the refinery’s cost of operations.
He explained that the refinery submits a list of preferred crude grades every month, but international buyers are often given priority. As a result, the refinery sometimes has to buy Nigerian crude from the international market through traders who add their own profit margins.
“Every month we submit a list of crude grades we want. We like Bonny Light, we like Escravos,” he said.
“What we are asking is that the domestic refining industry should be treated as customers of first preference, not customers of last resort.”
Bird said the refinery understands that the government has existing commitments with international buyers, but it would appreciate greater transparency in how crude allocations are made.
“We just want to understand the allocation method and where we sit in that pecking order, and the constraints being faced by NNPC in allocating those grades to domestic refineries instead of international traders.”
He said the refinery sometimes requests certain grades of crude, only to later find them being resold in the market by international traders.
“That is what is disappointing,” he said.
“Why can we not get them directly? It’s less about the individual crude grade and more about understanding the methodology used by the government and NNPC to allocate them.”
He added that crude meant for domestic refining should be prioritised under the crude-for-naira programme before being sold to foreign traders.
“Before it gets sold to an outfit in Geneva who takes their cut and then sells it back to us.”
-Rising Petrol Prices
The pump price of petrol has increased by more than ₦350 per litre following the Iran-US war, which led to the closure of the Strait of Hormuz, a key global oil shipping route.
Fuel Price Hike: 47 Government Agencies Collect Money From Us, We Buy Crude Oil Abroad— Dangote Refinery
Byadmin
Mar 10, 2026