By Bassey Udo
Dangote Petroleum Refinery and Petrochemicals says recent operational data by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on domestic crude oil supplied to local refineries for domestic refining are not correct.
The upstream petroleum industry regulator in its Q2 2026 statistics on the enforcement of the Domestic Crude Supply Obligation (DCSO) released on Monday in Abuja said a total of 53.7 million barrels of crude oil and condensate were supplied to local refiners between April and June, indicating an overall performance of 97.4% for the period.
The Commission said although about 18,127,638 barrels of crude oil were allocated to producers in April, the offering to refiners during the month exceeded expectation, with an offer of about 19,312,476 barrels.
The NUPRC said eventually, about 20,879,381 barrels of crude oil were supplied to local refiners, translating into the producers meeting 114.9% of their allocation.
Similarly, in May, the Commission said although about 18,778,392 barrels of crude oil were allocated to producers pursuant to its domestic crude supply obligation, the producers again exceeded expectations with an offer of about 23,187,893 barrels to the local refiners.
However, the Commission reported that the producers’ actual supply to the refiners by the end of the month stood at 14,228,865 barrels, representing 75.8% compliance.
In the month of June, the Commission said it allocated 18,172,638 barrels of crude oil to the producers against about 26,835,119 barrels they offered to refiners, which in turn took 18,606,026 barrels, representing a 102.4% performance.
At the level of refinery participation, the Commission said that out of about 68.1 million barrels of crude oil offered by the producers, or 98% of the total volumes offered in the second quarter of the year, Dangote Refinery, which required about 63 million barrels could only accept 52.6 million barrels, or only 78%.
Dangote Refinery reacts
However, in its reaction to the publication on Tuesday, Dangote Refinery in a statement disputed the statistics supplied by the NUPRC, saying suggestions that it rejected about 15.5 million barrels of crude oil offered by local producers in the second quarter of the year was wrong.
Insisting that the company remains fully committed to sourcing Nigerian crude oil and supporting the objectives of the Domestic Crude Supply Obligation (DCSO) framework, Dangote Refinery said it was in support of an arrangement where crude oil is made available in adequate volumes and offered on commercially competitive terms to ensure the sustainability of domestic refining and the supply of affordable petroleum products to Nigerians.
The Group Vice President, Oil & Gas and Fertiliser, Dangote Industries Limited, Devakumar Edwin, said the central issue was not the volume of crude oil nominally offered under the DCSO arrangement, but the quantity genuinely made available for purchase under commercially viable conditions.
He said Dangote Refinery has consistently raised concerns about inadequate availability of domestic crude oil for refining, adding that more recently it encountered situations where crude oil was offered at prices considered significantly above prevailing 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 clarified.
Since the commencement of the DCSO framework, Edwin said Dangote Refinery has faced significant challenges in securing crude oil supplies directly from domestic producers.
As a result, he said a substantial portion of the crude oil allocated under the arrangement had to be sourced through International Oil Companies (IOCs) and third parties, rather than directly from Nigerian upstream producers.
This process, he pointed out, often introduced additional premiums and transaction costs that can drive crude oil prices above internationally recognized benchmarks published by agencies such as Platts and Argus.
*In many cases, this has made domestically sourced crude less competitive than alternative supplies available on the international market,” he said.
“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.
