By Peace Udugba
Dangote Petroleum Refinery and Petrochemicals has reaffirmed its commitment to sourcing Nigerian crude oil, while stressing that domestic crude supplies must be available in sufficient volumes and at commercially competitive prices to support sustainable refining operations.
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.
The refinery said its position should not be interpreted as a rejection of Nigerian crude or the objectives of the Domestic Crude Supply Obligation (DCSO) framework.
Instead, it maintained that crude oil offered under the arrangement must be genuinely available for purchase and priced competitively to ensure the viability of domestic refining and the supply of affordable petroleum products to Nigerians.
Group Vice President, Oil & Gas and Fertiliser, Dangote Industries Limited, Devakumar Edwin, said the key issue was not the volume of crude nominally offered under the DCSO arrangement but the quantity that was actually available for purchase under commercially viable conditions.
According to Edwin, the refinery has consistently raised concerns about the inadequate availability of domestic crude and has recently encountered instances where crude was offered at prices significantly above prevailing international market benchmarks.
“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 commencement of the DCSO framework, the refinery had faced significant challenges in securing crude supplies directly from domestic producers.
As a result, he said, a substantial portion of the crude allocated under the arrangement had been sourced through International Oil Companies (IOCs) and third parties rather than directly from Nigerian upstream producers.
Edwin said the process often introduced additional premiums and transaction costs, pushing crude acquisition costs above internationally recognised benchmarks published by agencies such as Platts and Argus.
He noted that in several instances, the additional costs had 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 company maintained that improving the availability of domestic crude and ensuring competitive pricing would strengthen the sustainability of Nigeria’s refining sector, reduce dependence on imported petroleum products and support more affordable energy supplies for consumers.
