Susan Abayomi
The Nigerian National Petroleum Company (NNPC) has increased crude oil supply to Dangote Refinery, with 10 cargoes allocated for March, up from the usual five cargoes per month. This increase is part of Nigeria’s efforts to boost domestic fuel production and reduce reliance on imports. The refinery, which has a capacity of 650,000 barrels per day, aims to meet Nigeria’s fuel demands and export surplus products to other African countries.
The increased supply is a result of an agreement between NNPC and Dangote, where the state energy firm agreed to supply crude to the plant in exchange for naira payments. Aliko Dangote, the president of Dangote Group, stated that the refinery received six cargoes for naira and four cargoes for dollars in March.
Despite the increase, the refinery is still operating below its optimal capacity, requiring 13-15 cargoes monthly to meet Nigeria’s fuel requirements. The shortfall is currently being supplemented with imports of crude from the US and other African countries.
The NNPC has also announced plans to increase crude supply to seven cargoes in May, reflecting its commitment to prioritizing domestic crude supply. However, industry experts argue that this increase remains inadequate given the refinery’s capacity.
The Dangote Refinery is expected to significantly reduce Nigeria’s dependence on imported petroleum products. The refinery has already started exporting gasoline and urea to countries like South Africa, Ghana, and Kenya, helping to ease supply disruptions caused by the Iran war.
The increase in crude supply is also aimed at stabilizing fuel prices in Nigeria, which have reached record highs due to supply constraints and high import costs. By refining more crude locally, Nigeria is strengthening its ability to stabilize the energy market and ensure supply.
The NNPC’s efforts to increase crude supply to the Dangote Refinery are part of broader efforts to support the domestic market. The company is leveraging its global crude trading network to source third-party supply for the refinery at competitive international market rates.
