• Says facility facing challenges in securing local supplies
Peter Uzoho
Dangote Petroleum Refinery and Petrochemicals has clarified its position following reports referencing data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which suggested that the refinery rejected 15.5 million barrels of crude oil offered by local producers in the second quarter of 2026.
In a statement issued last night by Dangote Group, the company emphasised that it remains fully committed to sourcing Nigerian crude oil and supporting the objectives of the Domestic Crude Supply Obligation (DCSO) framework.
The data released by NUPRC on Monday said the Dangote Refinery accounted for the overwhelming majority of the crude supplied to domestic refiners during the second quarter of 2026.
The NUPRC said the refinery required 63 million barrels during Q2, while producers offered it 68.1 million barrels, adding that the volume represented about 98 per cent of the total 69.3 million barrels offered to all domestic refiners during the quarter.
The commission however reported that Dangote refinery accepted 52.6 million barrels, about 77 per cent of the crude offered to it and 10.4 million barrels below its stated requirement.
NUPRC added that the refinery’s intake also represented about 98 per cent of the 53.7 million barrels eventually supplied to local refiners during the period
But reacting to the data, Dangote stressed that crude oil must be available in adequate volumes and offered on commercially competitive terms to ensure the sustainability of domestic refining and the supply of affordable petroleum products to Nigerians.
Commenting on the issue, the Group Vice President, Oil & Gas and Fertiliser, Dangote Industries Limited, Devakumar Edwin, said the central issue was not the volume of crude nominally offered under the DCSO arrangement, but the quantity that is genuinely available for purchase under commercially viable conditions.
According to him, the refinery has consistently raised concerns about inadequate availability of domestic crude and, more recently, has encountered situations where crude is offered at prices that are significantly above prevailing market benchmarks.
“Our position is straightforward. We are ready and willing to purchase Nigerian crude oil, provided it is available in sufficient volumes and at competitive market prices. Like every refinery, we must procure crude that supports sustainable operations and value creation. This is essential to maintaining the economics of domestic refining and enabling us to deliver petroleum products to Nigerians at affordable and competitive prices,” Edwin said.
He explained that since the commencement of the DCSO framework, the refinery has faced significant challenges in securing crude supplies directly from domestic producers.
“As a result, a substantial portion of the crude allocated under the arrangement has had to be sourced through International Oil Companies (IOCs) and third parties rather than directly from Nigerian upstream producers”, he said.
According to him, this process often introduces additional premiums and transaction costs that can drive crude prices above internationally recognized benchmarks published by agencies such as Platts and Argus.
Edwin maintained that in many cases, this has made domestically sourced crude less competitive than alternative supplies available on the international market.
“When additional layers of intermediaries introduce premiums, the cost of crude acquisition increases significantly, affecting the overall economics of domestic refining. Ultimately, higher crude costs translate into higher costs of refined petroleum products for the local market,” he added.