BREAKING: NNPCL To Increase Crude Supply To Dangote Refinery Amid Fuel Surge
The Nigerian National Petroleum Company Limited (NNPCL) has concluded 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 development is part of the national oil company’s efforts to prioritise domestic crude supply to local refineries.
Despite the planned increase, industry stakeholders say the supply remains inadequate when compared with the refinery’s processing capacity.
Speaking in an interview with Vanguard, the National President of the Oil and Gas Services Providers Association of Nigeria, Colman Obasi, said seven cargoes would not meet the refinery’s needs.
“The government has over the years promised to supply adequate crude oil to the Dangote Petroleum Refinery and other plants. But seven cargoes appear to be insufficient, considering the 650,000 barrels-per-day capacity of the refinery,” he said.
Obasi added that prioritising crude supply to domestic refineries has become even more important amid global supply disruptions.
“From all indications, the refinery and others need more crude oil cargoes, and it is in the best interest of Nigeria to prioritise supply, especially now that Middle East crises have disrupted oil production and global trade flows,” he said.
Another industry expert, who spoke on condition of anonymity, also called for increased crude allocation to local refineries.
“As a major crude oil producer, Nigeria is expected to set aside more cargoes for domestic refining and distribution. We should reduce crude oil importation in order to conserve foreign exchange,” the expert said.
Recently, the Chief Executive Officer of the refinery, David Bird, revealed that the facility is expected to receive between 13 and 15 crude cargoes monthly under the crude-for-naira programme, but currently receives only five.
Speaking during an interview on ARISE News, Bird said the supply gap has limited the refinery’s ability to fully meet domestic fuel demand.
“Under the agreement, we should be getting about 13 to 15 cargoes a month. That’s what we could process to meet Nigeria’s domestic fuel requirements.
“Currently, we’re only getting five. So, that’s an underperformance against that pre-agreed volume contract,” he said.
Bird also noted that the difference between crude purchase prices and prevailing market premiums represents a loss to Nigeria.
“That value between the purchase price and the premium we’re now seeing is money Nigeria is leaking to the international trading community,” he said.
He further clarified that the crude-for-naira policy is designed primarily to support Nigeria’s economic stability rather than benefit the refinery alone.
“Crude-for-naira is not there to benefit Dangote Refinery. It is meant to provide resilience to foreign exchange. It is in the country’s interest to process domestic crude in local currency,” he said.
Despite the supply constraints, Bird said the refinery continues to operate at full capacity, supplying petroleum products to both the domestic market and neighbouring countries.