Nigeria Considers Crude Supply Reforms

Nigeria is considering changes to its crude allocation and pricing rules to help domestic refiners—including the 650,000 barrel-per-day Dangote Refinery—secure vital feedstock.

The Crude Oil Refinery-owners Association of Nigeria (CORAN) confirmed that regulatory discussions this week will evaluate proposals aimed at reducing supply bottlenecks and lowering costs.

Currently, local refiners face an extra $3 to $4 per barrel in feedstock expenses because they purchase through producers’ trading arms rather than direct channels.

The proposed reforms include allowing direct crude deliveries from nearby production networks to local plants and granting refiners discounts on freight fees embedded in Brent-linked pricing when those transportation costs are not actually incurred.

Nigeria considers crude supply reforms (News Central TV) — Nigeria considers crude supply reforms. Credit: Reuters

Industry regulators noted that domestic supply compliance among producers recently surged past 90 per cent, and officials are currently evaluating the proposed pricing adjustments and crude quality considerations.

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Abisoye Adeyiga

Abisoye Adedoyin Adeyiga holds a PhD in Languages and Media Studies and a Master’s in Education (English Language). Trained in digital marketing and investigative journalism, she is passionate about new media’s transformative power. She enjoys reading, traveling, and meaningful conversations.