- Dangote and Edo refineries may spend about $8.56 billion on crude oil imports in six months following the collapse of the naira-for-crude deal
- A breakdown shows that the two refineries may spend about $1.43 billion monthly on crude imports to operate optimally
- Following the collapse of the crude oil supply deal between the Nigerian government and the local refineries, the price of petrol has increased
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Dangote and other modular refineries in Nigeria may spend about $8.56 billion to import about 122,400,000 barrels of crude oil in six months to operate at full capacity.
The development means that the refineries may spend about $1.43 billion monthly on crude imports into Nigeria amid the collapse of the naira-for-crude deal between the refineries and the Nigerian government.
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Dangote Refinery insists on crude oil imports
The mega Dangote Refinery may spend the amount over the uncertainty surrounding the Domestic Crude Supply Obligation of the Nigerian government.
Legit.ng earlier reported that the naira-for-crude oil committee failed to meet on Monday, March 24, 2025, with other stakeholders to discuss the future of the deal.
The 650,000 bpd-capacity refinery has repeatedly disclosed that it was importing crude and would continue to do so as it hopes to ramp up production.
Edo Refinery begins talks to buy crude
Experts have said that with the collapse of the naira-for-crude deal, the refinery will rely more on imported crude to meet its production needs.
Punch reports that Edo Refinery plans to import crude to meet its refining needs.
The 30,000 bpd-capacity refinery has sought to purchase crude from a US-based crude seller.
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Findings show that while other modular refineries were planning to purchase crude, the Dangote and Edo refineries would need about 680,000 barrels per day to operate optimally.
Dangote and Edo refineries to buy 122.4mb
The figure translates to 20.4 million barrels in 30 days and 122.4 million barrels in six months.
At the average cost of $70 per barrel for Brent crude, the two facilities may spend about $8.56 billion in six months to import the commodity.
Reports say the national publicity secretary of the Crude Oil Refinery-Owners Association of Nigeria (CORAN), Eche Idoko, disclosed that sourcing raw materials from other suppliers remains a viable option for refiners.
He said domestic refineries are now stranded due to the collapse of the naira-for-crude deal.
Modular refineries suffer from crude scarcity
According to Idoko, the situation has forced Edo Refinery to open talks with a US crude supplier.
The CORAN spokesman said other refineries without financial strength have collapsed.
Nigeria has about 11 modular refineries with seven of them in operation, including the Walter Smith refinery, the Aradel refinery, the Omsa Pillar Astex Company refinery, the Edo refinery and the Duport modular refinery.
Others include Clairgold and Azikel refineries.
Legit.ng previously reported that the Dangote Refinery imported about 654.766MT of crude in three days after the collapse of the naira-for-crude deal.
Petrol stations and depots hike prices
Due to the deal’s collapse, private depot owners in Lagos have increased their petrol prices.
Also, filling stations in Abuja have raised their prices by N42 to N940 per litre as of Monday, March 24, 2025.
Investigations reveal that Conoil increased its petrol prices to N940 per litre, AYM Shafa increased its price to N920, Matrix increased its prices to N920, among others.
According to reports, NNPC and MRS filling stations increased their prices to N880 per litre, causing a long queue.
Marketers threaten to sell fuel in dollars
Meanwhile, Legit.ng reported that Petroleum oil marketers have adjusted their pump prices amid ongoing disagreement between the Nigerian National Petroleum Company Limited (NNPC) and the Dangote Refinery over the sale of crude in naira.
Legit.ng reported that the price adjustments came as private depot owners increased their prices from N850 per litre to N878.
Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has threatened to begin the sale of petrol in dollars if the Dangote Refinery starts selling its products in foreign currency.
Proofreading by James Ojo, copy editor at Legit.ng.
