The Dangote Petroleum Refinery and Petrochemicals has rejected reports suggesting that it turned down 15.5 million barrels of crude oil offered by local producers in the second quarter of 2026, insisting that the real challenge is the availability of crude at commercially viable prices.
The refinery was reacting to recent reports citing data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which indicated that 15.5 million barrels of crude offered under the Domestic Crude Supply Obligation (DCSO) framework were rejected by the refinery.
Dangote Refinery said it remains fully committed to purchasing Nigerian crude and supporting the objectives of the DCSO, but stressed that crude must be available in sufficient quantities and at competitive market prices.
The Group Vice President, Oil & Gas and Fertiliser, Dangote Industries Limited, Devakumar Edwin, said the controversy should not be viewed simply through the volume of crude nominally offered to the refinery.
According to Edwin, the critical issue is how much crude is genuinely available for purchase under commercially sustainable conditions.
“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,” he said.
“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 the refinery had consistently raised concerns over inadequate domestic crude supplies since the implementation of the DCSO framework.
He added that the refinery had more recently encountered instances where Nigerian crude was offered at prices significantly above prevailing international market benchmarks.
The Dangote executive disclosed that the refinery had faced considerable difficulties securing crude directly from domestic producers since the DCSO framework commenced.
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.
According to him, the involvement of intermediaries frequently introduces additional premiums and transaction costs, making Nigerian crude more expensive and, in some cases, 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,” Edwin said.
“Ultimately, higher crude costs translate into higher costs of refined petroleum products for the local market,” he added.
The company maintained that its position was not a rejection of Nigerian crude, but a demand for a supply arrangement that guarantees adequate volumes at prices that make domestic refining commercially sustainable.
Dangote Refinery said access to competitively priced domestic crude remained crucial to the success of Nigeria’s refining ambitions and efforts to ensure affordable petroleum products for consumers.
The company also reaffirmed its commitment to working within the DCSO framework while urging stakeholders to focus on the actual commercial realities surrounding crude supply, pricing and delivery.
