Dangote Petroleum Refinery has reaffirmed its willingness to purchase crude oil from Nigerian producers, but said supplies must be available in sufficient volumes and at commercially competitive prices.
The refinery’s position follows reports citing data from the Nigerian Upstream Petroleum Regulatory Commission which indicated that about 15.5 million barrels of crude offered to the refinery by local producers in the second quarter of 2026 were not accepted.
The company said it remains committed to the Domestic Crude Supply Obligation and does not oppose efforts to prioritise domestic refineries in crude supply.
However, Devakumar Edwin, Group Vice President, Oil & Gas and Fertiliser at Dangote Industries Limited, said the major concern was whether the crude offered under the arrangement was actually available for purchase on viable commercial terms.
Edwin said the refinery had continued to experience difficulties securing crude directly from domestic producers, forcing it in some instances to rely on international oil companies and other intermediaries.
He explained that the involvement of additional parties could add premiums and transaction costs to crude purchases, sometimes making Nigerian crude more expensive than comparable supplies available on the international market.
According to him, higher crude acquisition costs ultimately affect the economics of refining and could increase the cost of petroleum products supplied to the domestic market.
“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,” Edwin said.
He added that access to competitively priced crude was essential to maintaining sustainable refinery operations and ensuring that petroleum products could be supplied to Nigerians at affordable prices.
The refinery maintained that the focus should therefore be on securing reliable domestic crude supplies at prices that reflect prevailing international market benchmarks, rather than simply measuring the volume of crude nominally allocated under the DCSO framework.
