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August 12, 2026 - 11:50 AM

Dangote Refinery Explains 15.5 Million Barrel Crude Supply Dispute

The Dangote Petroleum Refinery has rejected claims that it turned down 15.5 million barrels of crude offered by local producers under Nigeria’s Domestic Crude Supply Obligation in the second quarter of 2026.

The refinery said the dispute centres on the actual availability and pricing of crude rather than a refusal to buy the volumes reported by the Nigerian Upstream Petroleum Regulatory Commission.

The News Chronicle reports that Dangote has continued to seek Nigerian crude but says some supplies have been offered through intermediaries at prices above international market benchmarks, making them commercially unattractive.

The company said limited direct access to domestic producers has forced it to source significant volumes through international oil companies and other suppliers, adding extra costs to crude purchases.

Dangote Industries’ Group Vice President for Oil and Gas and Fertiliser, Devakumar Edwin, said the refinery supports the DCSO but needs reliable volumes at competitive prices to maintain efficient operations and keep petroleum products affordable.

The company also raised concerns over gaps in the implementation of the Petroleum Industry Act, including situations where crude allocated for domestic refining had already been committed to other buyers.

Dangote said a more transparent and commercially sustainable supply system would strengthen local refining, reduce reliance on imported fuel and improve Nigeria’s energy security.

 

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