NNPC Doubles Crude Supply to Dangote Refinery

Nigeria’s downstream oil sector has received a boost as the Nigerian National Petroleum Company Limited (NNPC) doubled crude oil deliveries to the Dangote Petroleum Refinery in March, raising hopes of improved fuel availability.

Aliko Dangote confirmed the refinery received 10 cargoes last month, compared to an average of five monthly since late 2024.

“Last month, they gave us six cargoes with payments in naira and four cargoes with payments in dollars,” he said, noting the arrangement was part of the crude‑for‑naira deal signed with NNPC in 2024.

The increased allocation comes amid global supply disruptions caused by the US‑Israel attack on Iran, which affected Middle East crude flows. Industry operators say the move signals a strategic shift by government to prioritise domestic refining capacity and reduce exposure to volatile international markets.

Despite the improvement, Dangote cautioned that the refinery still operates below full capacity, requiring about 19 cargoes monthly. “The supply has improved, but it is not yet at the level we need. We still have to import crude from the United States and other African countries,” he explained.

He warned that limited access to locally produced crude, particularly from international oil companies, is driving up costs.

“Some of the international oil companies would rather sell to traders. So, we end up buying our own crude at a premium. The higher we pay, the higher the cost of petroleum products will be,” Dangote said.

The refinery exported about 17 cargoes of petroleum products to other African nations in March, underscoring its growing role in regional energy supply. Dangote also highlighted rising demand for polypropylene, a key industrial material the refinery has begun producing.