Nigeria to Negotiate Crude Supply Deals Amid Refinery Capacity Shortages
Nigeria's efforts to refine its crude oil domestically have been hindered by supply shortages. To address this issue, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is set to negotiate with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The NMDPRA has stated that enhanced crude supply to local refineries is crucial as Nigeria now boasts of 1.125 million barrels a day of installed refining capacity, led by Dangote's 700,000-bpd refinery.
The government aims to refine all its crude domestically, with a target production of 3 million barrels a day in the coming years. However, the country still faces major structural constraints, including underperforming state-owned refineries and excessive dependence on Dangote.