The NNPC Limited has concluded plans to increase crude oil supply to the Dangote Petroleum Refinery to seven cargoes in May 2026, up from the five cargoes delivered in recent months.
The move signals a renewed push to prioritise domestic crude allocation as Nigeria seeks to strengthen local refining capacity and reduce reliance on fuel imports.
Supply Increase Falls Short — Experts
Despite the planned increase, industry stakeholders say the volume remains insufficient for the refinery’s scale.
The facility, with a capacity of 650,000 barrels per day, requires significantly higher crude intake to operate optimally.
Colman Obasi, President of the Oil and Gas Services Providers Association of Nigeria, warned that the additional cargoes may not meet demand.
“Seven cargoes are still inadequate considering the refinery’s capacity. Nigeria must prioritise domestic supply, especially amid global disruptions,” he said.
Refinery Needs Up to 15 Cargoes Monthly
Chief Executive Officer of the refinery, David Bird, recently revealed that under the crude-for-naira arrangement, the plant is expected to receive between 13 and 15 cargoes monthly.
However, current deliveries remain far below that threshold.
“We are only getting five cargoes at the moment, which is below the agreed volume needed to meet Nigeria’s fuel demand,” he noted.
Push for Domestic Refining Gains Momentum
Analysts say increasing crude allocation to local refineries is critical for conserving foreign exchange and strengthening Nigeria’s energy security.
An industry expert noted that as a major oil producer, Nigeria should prioritise domestic refining over exports to reduce fuel import dependence.
Crude-for-Naira Policy Under Scrutiny
Bird also addressed concerns around the controversial crude-for-naira policy, clarifying that the initiative is designed to stabilise foreign exchange rather than benefit a single refinery.
He warned that gaps between crude purchase prices and international premiums are currently resulting in revenue losses to foreign traders instead of Nigeria.
Outlook
While the planned increase marks progress, stakeholders insist that more aggressive supply commitments will be needed to fully unlock the refinery’s potential and meet domestic fuel needs.
With global oil markets facing uncertainty, pressure is mounting on authorities to align crude supply with Nigeria’s refining ambitions.
