The NNPC Limited has concluded plans to raise crude oil allocation to the Dangote Petroleum Refinery to seven cargoes in May 2026, up from the five cargoes supplied in recent months.
The development underscores NNPC’s renewed focus on prioritising domestic crude supply, though industry stakeholders argue that the increase still falls short of what is required to meet refining capacity.
Reacting to the development, Colman Obasi, National President of the Oil and Gas Services Providers Association of Nigeria, described the planned supply as inadequate. He noted that the refinery’s capacity of 650,000 barrels per day demands a significantly higher volume of crude.
He added that increasing domestic supply is critical, particularly amid ongoing geopolitical tensions in the Middle East, which have disrupted global oil production and trade flows.
Another industry expert, who requested anonymity, also called for a more robust allocation strategy. According to the expert, Nigeria, as a major crude producer, should dedicate more output to local refining to reduce reliance on imports and conserve foreign exchange.
Meanwhile, Chief Executive Officer of the refinery, David Bird, recently disclosed that the facility is expected to receive between 13 and 15 cargoes monthly under the crude-for-naira arrangement but is currently receiving only five.
He explained that this shortfall represents a gap between agreed supply volumes and actual deliveries, limiting the refinery’s ability to fully meet domestic fuel demand. Bird also highlighted that discrepancies between crude purchase prices and prevailing premiums are resulting in revenue losses to international traders rather than Nigeria.
Clarifying the crude-for-naira policy, he emphasised that the initiative is designed to strengthen foreign exchange resilience by enabling domestic crude transactions in local currency, rather than serving as a direct subsidy to the refinery.
Despite ongoing supply constraints, the refinery continues to operate at full capacity, supplying refined products to both domestic and regional markets.
