Nigeria Weighs Crude Pricing Reforms To Boost Dangote & Domestic Refiners: Association
Nigeria Weighs Crude Pricing Reforms To Boost Dangote & Domestic Refiners: Association
Stakeholders are exploring changes to crude allocation and pricing rules to improve domestic refinery access, according to the Crude Oil Refinery‑Owners Association of Nigeria.
Pricing structures currently add $3–$4 per barrel to feedstock costs for local refiners, including the $20-billion Dangote refinery, with analysts identifying pricing rather than physical availability as the main constraint.
To address this, stakeholders are exploring several reform proposals:
🟠Allow producers linked to international oil companies to deliver crude directly to nearby refineries;
🟠Reduce reliance on pipelines and offering discounts to refiners for direct lifts—reflecting freight costs already embedded in Brent‑linked pricing but not actually incurred;
🟠Improve the domestic crude supply framework, which has already seen compliance rise to over 90% this quarter—up from less than 43% previously.
These ideas are expected to be discussed this week in a regulator-led review of Nigeria's domestic crude supply obligation.
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