The Lagos State Chamber of Commerce and Industry (LCCI) has attributed the inadequate supply of crude to Dangote Refinery and other local refineries to oil theft and pipeline vandalization.
Dr. Chinyere Almona, the Director General of LCCI, disclosed this in a recent statement concerning the state of crude oil supply to local refineries in Nigeria.
In a recent interview with CNN, Aliko Dangote, the Chairman of Dangote Refinery, disclosed that international oil companies (IOCs) are facing challenges in providing crude to local refineries. Dangote highlighted that IOCs prefer exporting the product to earn foreign exchange, impacting local refinery operations.
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Responding to these challenges, Almona emphasized that issues such as oil theft and pipeline vandalism significantly hinder crude supply to local refineries. She also mentioned policy concerns as additional contributing factors to the ongoing supply challenges.
Despite Nigeria’s daily production of 1,281,478 barrels of crude oil (excluding condensates), Dangote Refinery has sought crude supply from the United States due to local supply constraints, according to Daily Post. The slow commencement of fuel production in Dangote Refinery has been attributed by industry experts to the insufficient supply of crude oil. However, in January 2024, Dangote Refinery initiated the production of diesel and aviation fuel, months after its commissioning in May of the previous year.
