The NNPC Limited has announced plans to increase crude oil allocation to the Dangote Petroleum Refinery to seven cargoes in May 2026, up from the five cargoes supplied in previous months. The move underscores NNPC’s commitment to prioritising domestic crude supply in the coming months.
However, industry stakeholders argue that the planned allocation remains insufficient given the refinery’s capacity. Speaking to The Telegraph, the National President of the Oil and Gas Services Providers Association of Nigeria, Colman Obasi, said: “The government has long promised adequate crude oil supply to Dangote Petroleum Refinery and other plants. But seven cargoes appear insufficient, considering the refinery’s 650,000 barrels-per-day capacity. The refinery and others need more cargoes, especially now that Middle East crises are disrupting oil production and global trade flows.”
Another industry expert, who spoke on condition of anonymity, echoed the call for greater domestic allocation: “As a major crude oil producer, Nigeria should prioritise domestic refining and reduce crude imports to conserve foreign exchange.”
The issue of under-supply has been a longstanding concern. David Bird, Chief Executive Officer of Dangote Petroleum Refinery, recently disclosed that the facility is expected to receive 13 to 15 crude cargoes monthly under the crude-for-naira programme, but currently receives only five.
Speaking to ARISE News, Bird said: “Under the agreement, we should be getting 13 to 15 cargoes a month to meet Nigeria’s domestic fuel requirements. Currently, we’re only receiving five, which falls short of the pre-agreed volume contract.”
Bird added that the gap between crude purchase prices and prevailing market premiums represents revenue losses to international traders rather than Nigeria:
“The difference between purchase price and current premiums is revenue leaking to the international trading community.”
Clarifying the crude-for-naira initiative, Bird stressed its national purpose: “Crude-for-naira is not designed to benefit Dangote Refinery. It exists to provide resilience to foreign exchange. It is in the country’s interest to process domestic crude in local currency.”
Despite supply constraints, Bird confirmed that the refinery continues to operate at full capacity, supplying both domestic and regional markets.
