Dangote Refinery MD David Bird on Soaring Oil Costs and Fuel Security
At a recent media briefing, David Bird, Managing Director of Dangote Petroleum Refinery, warned that “what’s worse than $120 oil is no oil.” He explained that the refinery buys Nigerian crude at international benchmark prices and pays global insurance and freight rates to bring it in. Bird outlined eight key points: the refinery will meet Nigeria’s fuel demand despite global disruptions; domestic refining boosts supply security; there are no preferential crude prices under the crude-for-naira deal; import-dependent countries suffer most in the current oil crisis; global crude jumped from about $65 to nearly $120 per barrel in one week; freight rates have risen from $800,000 to $3.5 million per shipment; and Dangote Refinery runs at 650,000 barrels per day with potential to reach 700,000. He stressed that the plant is fully exposed to international commodity markets, including crude pricing, shipping costs, insurance, and financing. Bird’s remarks highlight the refinery’s role in shielding Nigeria from fuel shortages amid extreme market volatility.
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