The Nigerian National Petroleum Company Limited has concluded plans to increase crude oil allocation to the Dangote Petroleum Refinery to seven cargoes in May 2026, up from the five cargoes supplied in previous months, signaling a renewed push to strengthen domestic refining capacity.
According to TheCable, the adjustment reflects NNPC’s commitment to prioritising local crude supply as part of broader efforts to stabilise Nigeria’s energy sector.
The refinery’s Chief Executive Officer, David Bird, recently disclosed that under the crude-for-naira arrangement, the facility is expected to receive between 13 and 15 cargoes monthly—volumes necessary to meet the country’s fuel demand. However, current supply levels remain significantly below that threshold.
Speaking during an interview on ARISE News, Bird described the situation as a shortfall in meeting pre-agreed contractual volumes, noting that the gap has financial implications for Nigeria.
He explained that discrepancies between crude purchase prices and prevailing international premiums result in revenue losses that ultimately benefit foreign trading entities rather than the Nigerian economy.
Bird also clarified that the crude-for-naira policy is designed to enhance foreign exchange resilience, not to favour the refinery. According to him, processing crude locally in naira aligns with national economic interests by reducing pressure on foreign currency demand.
Despite supply limitations, the Dangote Refinery continues to operate at full capacity, supplying petroleum products to both domestic and regional markets.
Meanwhile, the Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, recently led a high-level delegation to the refinery complex in Ibeju-Lekki. The visit focused on strengthening operational and commercial collaboration between both organisations.
Ojulari commended Aliko Dangote for delivering what he described as a landmark project, noting that the refinery positions Nigeria as a major downstream hub in Africa.
He added that the partnership between NNPC and Dangote Refinery is expected to unlock synergies across infrastructure, capital, and markets, while enhancing transparency and coordination in their business relationship.
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