Africa’s biggest oil-producing country spent over a decade pitching to investors that it was supporting the construction of Dangote Refinery’s 650,000 barrels per day of crude oil at home, and that the country would finally stop shipping out crude only to buy back expensive fuel.
That bet is now colliding with a more stubborn problem as there isn’t enough crude to go around.
BusinessDay’s findings showed Nigeria’s petroleum challenge is shifting from inadequate refining capacity to insufficient crude availability.
“With domestic refining capacity expanding, the sector’s performance will increasingly depend on whether upstream production can meet three competing demands: refinery feedstock, export obligations and crude-backed financing commitments,” notes from PAC Research, a Lagos-based research firm, said on Tuesday.
It added, “The interaction between these pressures will shape fuel pricing, foreign-exchange demand, inflation and investor confidence over the next 12–18 months”.
The clearest sign came this month, when Dangote Petroleum Refinery,
This post was originally published on this site.
