By Ayomide Otitoju
The Nigerian National Petroleum Company Limited (NNPC) has raised crude oil allocations to the Dangote Petroleum Refinery and Petrochemicals, assigning seven cargoes for May loading in a bid to strengthen domestic fuel production. Previously, the refinery had been receiving five cargoes monthly, and will continue to receive the same number in April, according to two trader sources who spoke to Reuters on Tuesday.
The move comes amid rising fuel prices and mounting pressure on supply across Nigeria, as the 650,000-barrels-per-day refinery struggles to secure sufficient crude locally. Dangote has repeatedly noted that it requires 13–15 cargoes monthly to operate at full capacity, forcing reliance on imported crude for shortfalls at market prices affected by geopolitical tensions, particularly conflicts in the Middle East.
Fuel prices in Nigeria have hit record highs in recent months, and although the Dangote refinery has increased petrol supply to the domestic market, it currently meets only about two-thirds of the country’s estimated daily demand of 60 million litres. The refinery recently raised depot petrol prices by approximately 13 per cent, compounding pressure on consumers.
NNPC officials and refinery representatives were unavailable for comment, but the increase aligns with government efforts to support local refining capacity. Industry sources previously told reporters that NNPC is leveraging its global crude trading network to source third-party supply for the Dangote refinery at competitive international rates.
A senior NNPC official, speaking on condition of anonymity, said: “As the national oil company entrusted with safeguarding Nigeria’s energy security, NNPC Limited remains fully committed to supporting domestic refining, including the Dangote Petroleum Refinery. Within the framework of our existing agreements, we continue to facilitate crude supply to DRP in the face of temporary availability constraints.”
Despite the increase, the refinery continues to face a shortfall that prevents it from reaching optimal output. The diversion of additional crude to domestic refining could also affect Nigeria’s crude export volumes, potentially reshaping its position in the global market as buyers seek alternative sources.
The Dangote refinery, which began operations in 2024, is expected to significantly reduce Nigeria’s dependence on imported petroleum products. However, sustained domestic crude supply at required volumes remains critical to stabilising fuel prices, ensuring energy security, and unlocking the refinery’s full potential for long-term economic benefits.
