Why Dangote and other modular refineries want to import crude

• Dangote and Edo refineries whitethorn walk astir $8.56 cardinal connected crude lipid imports successful six months pursuing the illness of the naira-for-crude deal
• A breakdown shows that the 2 refineries whitethorn walk astir $1.43 cardinal monthly connected crude imports to run optimally
• Following the illness of the crude lipid proviso woody betwixt the Nigerian authorities and the section refineries, the terms of petrol has increased

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the system for implicit a decade.

Dangote and different modular refineries successful Nigeria whitethorn walk astir $8.56 cardinal to import astir 122,400,000 barrels of crude lipid successful six months to run astatine afloat capacity.

The improvement means that the refineries whitethorn walk astir $1.43 cardinal monthly connected crude imports into Nigeria amid the illness of the naira-for-crude woody betwixt the refineries and the Nigerian government.

Two Nigerian refineries statesman moves to import $8.56 cardinal worthy of crude oil. Credit: PIUS EKPEI UTOMI
Source: Getty Images

Dangote Refinery insists connected crude lipid imports

The mega Dangote Refinery whitethorn walk the magnitude implicit the uncertainty surrounding the Domestic Crude Supply Obligation of the Nigerian government.

Legit.ng earlier reported that the naira-for-crude lipid committee failed to meet connected Monday, March 24, 2025, with different stakeholders to sermon the aboriginal of the deal.

The 650,000 bpd-capacity refinery has repeatedly disclosed that it was importing crude and would proceed to bash truthful arsenic it hopes to ramp up production.

Edo Refinery begins talks to bargain crude

Experts person said that with the illness of the naira-for-crude deal, the refinery volition trust much connected imported crude to conscionable its accumulation needs.

Punch reports that Edo Refinery plans to import crude to conscionable its refining needs.

The 30,000 bpd-capacity refinery has sought to acquisition crude from a US-based crude seller.

Findings amusement that portion different modular refineries were readying to acquisition crude, the Dangote and Edo refineries would request astir 680,000 barrels per time to run optimally.

Dangote and Edo refineries to bargain 122.4mb

The fig translates to 20.4 cardinal barrels successful 30 days and 122.4 cardinal barrels successful six months.

At the mean outgo of $70 per tube for Brent crude, the 2 facilities whitethorn walk astir $8.56 cardinal successful six months to import the commodity.

Reports accidental the nationalist publicity caput of the Crude Oil Refinery-Owners Association of Nigeria (CORAN), Eche Idoko, disclosed that sourcing earthy materials from different suppliers remains a viable enactment for refiners.

He said home refineries are present stranded owed to the illness of the naira-for-crude deal.

Modular refineries endure from crude scarcity

According to Idoko, the concern has forced Edo Refinery to unfastened talks with a US crude supplier.

The CORAN spokesperson said different refineries without fiscal spot person collapsed.

Nigeria has astir 11 modular refineries with 7 of them successful operation, including the Walter Smith refinery, the Aradel refinery, the Omsa Pillar Astex Company refinery, the Edo refinery and the Duport modular refinery.

Others see Clairgold and Azikel refineries.

Legit.ng antecedently reported that the Dangote Refinery imported astir 654.766MT of crude successful 3 days aft the illness of the naira-for-crude deal.

Petrol stations and depots hike prices

Due to the deal’s collapse, backstage depot owners successful Lagos person accrued their petrol prices.

Also, filling stations successful Abuja person raised their prices by N42 to N940 per litre arsenic of Monday, March 24, 2025.

Investigations uncover that Conoil accrued its petrol prices to N940 per litre, AYM Shafa accrued its terms to N920, Matrix accrued its prices to N920, among others.

According to reports, NNPC and MRS filling stations accrued their prices to N880 per litre, causing a agelong queue.

Marketers endanger to merchantability substance successful dollars

Meanwhile, Legit.ng reported that Petroleum lipid marketers person adjusted their pump prices amid ongoing disagreement betwixt the Nigerian National Petroleum Company Limited (NNPC) and the Dangote Refinery implicit the merchantability of crude successful naira.

Legit.ng reported that the terms adjustments came arsenic backstage depot owners accrued their prices from N850 per litre to N878.

Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has threatened to statesman the merchantability of petrol successful dollars if the Dangote Refinery starts selling its products successful overseas currency.

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Source: Legit.ng