Dangote Petroleum Refinery and Petrochemicals has clarified its position on domestic crude oil supply, stating that it remains committed to purchasing Nigerian crude but only if it is available in sufficient quantities and offered on commercially competitive terms.
The clarification followed recent reports referencing data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which indicated that the refinery rejected 15.5 million barrels of crude oil offered by local producers in the second quarter of 2026.
In a statement, the company said it fully supports the objectives of the Domestic Crude Supply Obligation (DCSO) framework, but stressed that the key issue is the actual availability of crude for purchase under commercially viable conditions.
Group Vice President, Oil & Gas and Fertiliser at Dangote Industries Limited, Devakumar Edwin, said the refinery has consistently raised concerns about inadequate domestic crude availability and the pricing of crude offered by local producers.
“Our position is straightforward. We are ready and willing to purchase Nigerian crude oil, provided it is available in sufficient volumes and at competitive market prices. Like every refinery, we must procure crude that supports sustainable operations and value creation. This is essential to maintaining the economics of domestic refining and enabling us to deliver petroleum products to Nigerians at affordable and competitive prices,” Edwin said.
He explained that since the DCSO framework commenced, the refinery has experienced significant difficulties in securing crude supplies directly from domestic producers. Consequently, a substantial portion of the crude allocated under the arrangement has been sourced through International Oil Companies (IOCs) and third parties.
Edwin said the involvement of intermediaries often adds premiums and transaction costs, pushing crude prices above internationally recognised benchmarks such as those published by Platts and Argus.
According to him, these additional costs have, in many cases, made domestically sourced crude less competitive than alternative supplies available on the international market.
“When additional layers of intermediaries introduce premiums, the cost of crude acquisition increases significantly, affecting the overall economics of domestic refining. Ultimately, higher crude costs translate into higher costs of refined petroleum products for the local market,” he added.
The refinery maintained that ensuring adequate domestic crude availability at competitive market prices is essential for the sustainability of local refining operations and the supply of affordable petroleum products to Nigerians.
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