Business
Government Adjusts Crude Distribution As Warri And Port Harcourt Refineries Restart
A report suggests that the Nigerian government may reduce its crude oil supply to the Dangote Petroleum Refinery, scaling down its current allocation of 300,000 barrels per day. This reduction is anticipated as part of adjustments under the government’s naira-for-crude initiative, which follows the reopening of the Warri and Port Harcourt refineries.....KINDLY READ THE FULL STORY HERE▶
Both refineries, now operating at a combined capacity of approximately 135,000 barrels per day, are expected to impact the supply to Dangote Refinery, unless Nigeria’s oil output increases significantly. The plants, managed by the Nigerian National Petroleum Company Limited (NNPCL), resumed operations after years of neglect. The decision to reduce crude allocation to Dangote Refinery aims to ensure an adequate supply of crude to all local refineries. A source confirmed, “With the Port Harcourt refineries back online and Warri having resumed operations, crude allocation to Dangote and other local refineries will be cut. Warri joined last week, and the new Port Harcourt refinery is nearly ready.” The $20 billion Lekki-based Dangote refinery was allocated around 300,000 barrels per day out of the total 450,000 barrels per day approved by the government. As more refineries, including Kaduna and the upcoming BUA refinery, come online, the supply to Dangote is expected to be reduced. “With the increased capacity of local refineries, the crude allocation to Dangote will likely be lowered. The exact distribution formula is still unclear, but it is almost certain that Dangote’s supply will be affected,” the source added. The government had previously redirected 445,000 barrels of crude, which was allocated to the Warri, Kaduna, and Port Harcourt refineries when they were inactive, to Dangote Refinery. Additionally, the government has ceased selling crude on credit to local refineries to improve revenue collection. “Refiners are not pleased, but the government’s focus is on enhancing revenue,” the official noted. In response to the reduced allocation, Dangote Refinery may resort to importing crude oil, which would be subject to international pricing. For More Information And News Update, Join Nivonews Whatsapp Channel With Link Below: httForps://whatsapp.com/channel/0029VaV4jB6DuMRgwqnJCF32ber 2 that the VAT sharing model inFor advertisement inquiries only, kindly send a mFor essage to 0901064981For 4 on WhatsAppn Decem the proposed reforms would unfairly benefit Lagos and Rivers state.
The future of Nigeria’s Naira-for-Crude policy remains in limbo as negotiations continue between the Nigerian government and Dangote Refinery. The six-month agreement between the Nigerian National Petroleum Corporation (NNPCL) and Dangote Refinery expired on March 31, 2025, without a renewal, leading to the suspension of the refinery’s sale of refined petroleum products in Naira. However, the refinery has continued processing approximately 400,000 barrels of crude oil daily, with 35% of the crude sourced from international markets, particularly Brazil and Equatorial Guinea.....KINDLY READ THE FULL STORY HERE▶
Although the policy’s future is still under review, sources suggest that its economic implications, especially concerning fuel prices and foreign exchange rates, make it crucial to the national economy. Despite challenges in crude supply from NNPC, Dangote Refinery has expanded its global sourcing and is currently sourcing crude from Brazil’s Petrobras and Equatorial Guinea.
No official agreement has been reached yet to extend the Naira-for-Crude deal. The Nigerian government’s committee in charge of the policy is waiting for recommendations from the Nigeria Upstream Petroleum Regulatory Commission before proceeding. Meanwhile, the refinery’s management has expressed uncertainty regarding the renewal of the deal, citing concerns over the financial strain and volatility of exchange rates. The future of the policy remains unclear, with NNPC expected to supply crude oil to Dangote Refinery in April, but payment terms are yet to be finalized.
The price of cement, a vital resource for Nigeria’s construction industry, has witnessed significant changes recently, with rates fluctuating depending on brand, location, and market factors. Here is an overview of the current prices for some leading cement brands:....KINDLY READ THE FULL STORY HERE▶
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Dangote Cement: The cost of a 50kg bag of Dangote Cement ranges between ₦8,000 and ₦10,300. Known for its high quality, Dangote Cement remains a preferred choice in various construction projects. Prices are generally lower in areas near production plants but tend to rise in regions requiring extensive distribution.
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BUA Cement: Priced between ₦8,000 and ₦8,500 per 50kg bag, BUA Cement is popular among builders due to its competitive pricing and stability. Prices may vary slightly depending on proximity to manufacturing sites.
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Lafarge Water Shield Cement: Priced at ₦20,000 per 50kg bag, this cement variant is specifically formulated for durability and resistance to moisture, making it ideal for projects in damp environments.
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Waterproof Cement JK: Available at ₦15,000 per 50kg bag, Waterproof Cement JK is engineered to offer exceptional protection against water ingress, particularly useful for wet construction sites.
Over the past year, cement prices in Nigeria have surged significantly. At the start of 2024, a 50kg bag cost around ₦4,500. By November 2024, the price rose to about ₦8,500, reflecting an increase of approximately 89%. This upward trend is attributed to factors such as rising production costs, increased demand, and logistical challenges.
Marketers predict a potential further increase in cement prices, emphasizing the need for stakeholders in the construction sector to stay informed and plan accordingly.
A recent survey conducted by Naija News has revealed a notable decrease in the price of cooking gas in Nigeria, offering much-needed relief to households and small businesses. According to the survey, the cost of refilling cooking gas per kilogram has reduced significantly from ₦1,350 to ₦1,020.....KINDLY READ THE FULL STORY HERE▶
This positive development is expected to ease the financial burden on Nigerian families and small enterprises, especially those that heavily depend on cooking gas as a primary energy source. The survey, encompassing gas stations and vendors from various parts of the country, shows that the reduced price may help lower the overall cost of living.
The revised price breakdown is as follows:
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1 kg of Cooking Gas: ₦1,020
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3 kg of Cooking Gas: ₦3,060
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5 kg of Cooking Gas: ₦5,100
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10 kg of Cooking Gas: ₦10,200
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12.5 kg of Cooking Gas: ₦12,750
This decline marks a significant shift from the previous upward trend in gas prices and is likely to positively impact the economy, particularly the food and hospitality sectors. Businesses that rely on cooking gas will experience reduced operational costs, ultimately boosting their profit margins.
Experts attribute the drop in cooking gas prices to several factors, including fluctuations in global energy costs and adjustments within local supply chains. Despite recent variations in crude oil and natural gas prices, the reduction is perceived as a welcome development for Nigerian consumers.
By spending less on cooking gas, households and small businesses will now see some financial relief in their monthly budgets, especially during these economically challenging times.
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