David Bird, Managing Director of Dangote Refinery, has raised concerns over the impact of government levies and allocation practices on the cost of petrol in Nigeria.
Speaking at a press conference in Lagos on Monday, Bird said the refinery incurs charges from 47 different government agencies, many of which contribute to higher pump prices.
Bird highlighted that the Federal Government still treats Dangote Refinery as a “customer of last resort”, often prioritising the sale of premium crude oil grades to international buyers.
He called on Nigeria to adopt a self-interest approach similar to other countries, ensuring the domestic refining sector has sufficient access to the right crude grades, especially amid extreme volatility in global oil markets.
“All countries are being very self-interested. China has banned exports. Thailand, Vietnam, and others with strategic reserves are ensuring their domestic industry gets priority,” Bird said.
“That is the role the Nigerian government should consider — ensuring the domestic refining industry has abundant access to the right grades of crude.”He also urged regulatory bodies to review their fees and contributions to the supply chain, saying that excessive regulatory costs from agencies such as NPA and NIMASA continue to inflate processing expenses.
“We still feel there’s a lot of regulatory impost at every step. Every agency should look at how they can reduce costs and support the domestic industry,” he added.
Bird explained that the refinery submits monthly crude allocation requests to the government, but orders are often fulfilled abroad first.
This forces Dangote Refinery to source crude from international traders, who add their own costs, increasing the final price.
“The domestic industry should be seen as a customer of first preference, not last resort,” he said.
He called for greater transparency in the allocation methodology under the Crude for Naira programme, urging the government and NNPC to prioritise local refiners rather than allowing crude to be exported through intermediaries, which later returns at higher costs.
The remarks come amid rising fuel prices in Nigeria, with a litre of petrol climbing by more than N350 following disruptions in the Strait of Hormuz due to the US-Iran conflict.
Bird emphasised that securing sufficient crude for domestic refining is critical to stabilising fuel supply and prices in the country.
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