Dangote Refinery Explains Rejection of 15.5m Barrels of Crude
Dangote Petroleum Refinery has explained why it did not take up about 15.5 million barrels of crude oil offered to it by local producers in the second quarter of 2026.
The clarification followed data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which showed that the refinery required 63 million barrels of crude during the period but accepted 52.6 million barrels.
According to the commission, producers offered the refinery 68.1 million barrels, representing about 98 per cent of the 69.3 million barrels offered to all domestic refiners.
However, Dangote Group said the figures did not fully reflect the commercial realities surrounding the crude offered to the refinery.
The company said it remains committed to purchasing Nigerian crude and supporting the Domestic Crude Supply Obligation framework, but stressed that supplies must be available in sufficient quantities and at competitive prices.
Dangote Industries Limited Group Vice President, Oil & Gas and Fertiliser, Devakumar Edwin, said the major challenge was not simply the volume of crude allocated or offered, but how much was actually available for purchase at commercially viable rates.
He said the refinery had repeatedly faced difficulties obtaining crude directly from Nigerian producers, forcing it to rely substantially on international oil companies and other intermediaries.
According to Edwin, additional transaction costs and premiums introduced through third parties sometimes push the price of Nigerian crude above international benchmarks.
He said buying crude at such elevated prices could undermine the economics of domestic refining and eventually increase the cost of petroleum products.
Edwin maintained that Dangote Refinery is prepared to buy more Nigerian crude whenever adequate volumes are offered at competitive market prices.
The company said securing affordable domestic crude remains important to sustaining local refining and ensuring petroleum products are supplied to Nigerians at competitive prices.
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