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By Udeme Akpan, Energy Editor
The NNPC Limited has concluded plans to increase crude oil allocation to the Dangote Petroleum Refinery to seven cargoes in May 2026, up from the five cargoes supplied in previous months.
The move, it was gathered, reflects NNPC’s commitment to prioritising domestic crude supply in the coming months.
However, reacting in an interview with Vanguard, the National President of the Oil and Gas Services Providers Association of Nigeria, Colman Obasi, said the planned increase remains inadequate given the refinery’s capacity.
“The government has over the years promised to supply adequate crude oil to the Dangote Petroleum Refinery and other plants. But seven cargoes appear to be insufficient, considering the 650,000 barrels-per-day capacity of the refinery.
“From all indications, the refinery and others need more crude oil cargoes, and it is in the best interest of Nigeria to prioritise supply, especially now that Middle East crises have disrupted oil production and global trade flows,” he said.
Similarly, another industry expert, who pleaded anonymity, stressed the need for greater domestic allocation.
“As a major crude oil producer, Nigeria is expected to set aside more cargoes for domestic refining and distribution. We should reduce crude oil importation in order to conserve foreign exchange,” the expert said.
Recently, David Bird, Chief Executive Officer of the refinery, disclosed that the facility is expected to receive between 13 and 15 crude cargoes monthly under the crude-for-naira programme but is currently receiving only five.
Speaking during an interview on ARISE News, Bird said: “Under the agreement, we should be getting about 13 to 15 cargoes a month. That’s what we could process to meet Nigeria’s domestic fuel requirements.
“Currently, we’re only getting five. So, that’s an underperformance against that pre-agreed volume contract.”
He further noted that the gap between crude purchase prices and prevailing premiums represents revenue losses to international traders rather than Nigeria.
“That value between the purchase price and the premium we’re now seeing is money Nigeria is leaking to the international trading community,” he added.
Clarifying the controversial crude-for-naira policy, Bird explained that the initiative is often misunderstood.
“Crude-for-naira is not there to benefit Dangote Refinery. It is meant to provide resilience to foreign exchange. It is in the country’s interest to process domestic crude in local currency,” he said.
Despite the supply constraints, he maintained that the refinery is operating at full capacity, supplying both domestic and regional markets.