Plans by the Nigerian National Petroleum Company Limited (NNPC Limited) to increase crude oil supply to the Dangote Petroleum Refinery have drawn mixed reactions from industry stakeholders, with concerns that the proposed volumes remain insufficient for optimal operations.
NNPC is expected to raise crude allocation to the refinery to seven cargoes in May 2026, up from the five cargoes delivered in recent months, in what is seen as a step toward prioritising domestic supply.
However, the National President of the Oil and Gas Services Providers Association of Nigeria, Colman Obasi, argued that the increase does not match the refinery’s processing capacity of 650,000 barrels per day. He noted that more robust supply levels are required to meet domestic demand and reduce reliance on imports, particularly amid disruptions in global oil markets linked to tensions in the Middle East.
Other industry voices have echoed similar concerns, stressing that as a major crude producer, Nigeria must allocate more resources to domestic refining to conserve foreign exchange and strengthen energy security.
Earlier, the refinery’s Chief Executive Officer, David Bird, disclosed that under the crude-for-naira arrangement, the facility is expected to receive between 13 and 15 cargoes monthly. He revealed that current deliveries—hovering around five cargoes—fall significantly short of agreed volumes, limiting the refinery’s ability to fully meet local fuel needs.
Bird also highlighted the financial implications of the supply gap, noting that differences between crude purchase prices and prevailing market premiums are effectively transferring value to international traders rather than benefiting Nigeria.
Clarifying the intent of the crude-for-naira policy, he explained that the initiative is designed to ease foreign exchange pressures and support domestic refining, rather than offer preferential treatment to the refinery.
Despite the supply constraints, the Dangote facility continues to operate at full capacity, supplying petroleum products to both local and regional markets.