Nigeria's Modular Refineries Struggle to Access Dollars for Feedstock, Threatening Operations

Modular refineries in Nigeria are struggling to access foreign exchange to purchase crude oil priced in dollars, threatening operations.

The 25 licensed modular refineries have a combined capacity to refine 200,000 barrels per day, but are operating below capacity due to lack of feedstock.

Inability to source dollars makes it very difficult for modular refineries to purchase crude oil for production.

Operators request crude oil to be sold to them in naira to ease pressure on forex market and make diesel cheaper.

Forex crisis causes uncertainty in pricing of refined products from modular refineries, limiting supply to market.