Nigeria Moves to Boost Domestic Refining as NNPC Increases Crude Supply to Dangote
- NNPC plans to increase crude oil supply to Dangote Refinery to seven cargoes in May 2026
- The refinery is expected to receive 13 to 15 cargoes monthly, but currently gets about five
- Experts are calling for greater domestic crude allocation to local refineries to reduce imports
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology, and macroeconomic trends in Nigeria.
The NNPC Limited is set 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, Reuters reported.
The planned increase is understood to be part of efforts to prioritise domestic crude supply and support local refining capacity.
Source: UGC
Supply increase seen as insufficient
Despite the planned adjustment, industry stakeholders say the volume remains below the refinery’s needs.
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 demand.
He noted that the facility, with a capacity of 650,000 barrels per day, requires significantly more crude supply to operate optimally.
According to him, prioritising domestic crude allocation has become more urgent amid disruptions in global oil markets linked to tensions in the Middle East.
Experts call for more domestic allocation
Another industry expert, who spoke anonymously, also called for increased crude allocation for local refining.
The expert said Nigeria, as a major oil producer, should dedicate more cargoes to domestic use to reduce reliance on imports and conserve foreign exchange.
Earlier, the Chief Executive Officer of the Dangote refinery, David Bird, disclosed that the plant is expected to receive between 13 and 15 crude cargoes monthly under the crude-for-naira arrangement.
Speaking during an interview on ARISE News, Bird said the refinery is currently receiving only five cargoes, describing the situation as below the agreed supply level.
“Under the agreement, we should be getting about 13 to 15 cargoes a month… Currently, we’re only getting five,” he said.
Concerns over revenue losses
Bird added that the gap between crude purchase prices and prevailing premiums is resulting in revenue losses for Nigeria, as gains are captured by international traders.
He also clarified that the crude-for-naira policy is intended to strengthen foreign exchange stability rather than benefit the refinery alone.
According to him, processing domestic crude in local currency would enhance economic resilience.
Source: Getty Images
Refinery maintains operations
Despite the supply shortfall, Bird said the refinery continues to operate at full capacity, supplying both domestic and regional fuel markets.
The development highlights ongoing challenges in aligning crude supply with Nigeria’s refining ambitions, as stakeholders push for policies that prioritise local production and reduce dependence on fuel imports.
Dangote Refinery threatens full export
Legit.ng earlier reported that the Dangote Refinery has threatened to fully supply the international market and deny Nigerians fuel if the Nigerian authorities continue to grant import licences to importers.
Sources within the mega refinery disclosed that management is considering exporting all petroleum products in response to the continued issuance of petrol import licences, despite official claims to the contrary.
Experts warn that full exports could lead to fuel shortages and renewed price hikes in Nigeria's downstream petroleum market.
Source: Legit.ng
