Dangote's Dollar Shift Reveals Nigeria's Bigger Oil Problem

Africa's biggest refinery has started pricing fuel in U.S. dollars because Nigeria can't supply enough Nigerian crude to keep it running. Dangote Petroleum Refinery, which can process 700,000 barrels of crude per day, said it is switching domestic gasoline, diesel, and jet fuel pricing to dollars af

Source: OilPrice.com

DW NOTE

Dangote paid for crude in naira, then switched back to dollars. That tells you the naira crude pricing wasn't a policy — it was a subsidy the refinery could no longer afford to accept. When your largest industrial project can't stomach the local currency for the one input it was built to process, you don't have an oil sector. You have a foreign exchange crisis with refineries attached.

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