Africa’s largest refinery, the Dangote Refinery, has increased fuel exports as reduced domestic crude supplies under Nigeria’s naira-for-crude arrangement strain operations. The refinery has turned to international crude purchases to maintain full production, but selling refined fuel locally in naira has made it difficult to obtain the US dollars needed to pay foreign suppliers. Rising global oil prices, fueled by geopolitical tensions, have further increased operating costs, with benchmark crude trading above $80 per barrel. Consequently, the refinery is exporting more products to generate the foreign exchange needed to sustain production. The development underscores ongoing challenges in balancing Nigeria’s domestic fuel supply ambitions with the refinery’s financial sustainability.
Business Insider Africa