Dangote Refinery and Petrochemicals has clarified its position. Recent reports referenced data from the Nigerian Upstream Petroleum Regulatory Commission. The reports suggested the refinery rejected 15.5 million barrels of crude oil. These figures were offered by local producers in the second quarter of 2026.
The statement clarifies the firm’s stance while data are being assessed publicly. It acknowledges the NUPRC data and the claimed rejection during the second quarter of 2026. Further details will be provided when available. This clarification aims to ensure accurate public understanding.
The company emphasized that it remains fully committed to sourcing Nigerian crude oil. It supports the objectives of the Domestic Crude Supply Obligation (DCSO) framework.
Additionally, crude oil must be available in adequate volumes. Moreover, it must be offered on commercially competitive terms to ensure the sustainability of domestic refining. It should also support the supply of affordable petroleum products to Nigerians.
Commenting on the issue, the Group Vice President, Oil & Gas and Fertilizer, Dangote Industries Limited, Devakumar Edwin, said the central issue is not the volume of crude nominally offered under the DCSO arrangement, but the quantity that is genuinely available for purchase under commercially viable conditions.
According to him, the refinery has consistently raised concerns about inadequate availability of domestic crude and, more recently, has encountered situations where crude is offered at prices that are 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 said.
He explained that since the commencement of the DCSO framework, the refinery has faced significant challenges in securing crude supplies directly from domestic producers. As a result, a substantial portion of the crude allocated under the arrangement has had to be sourced through International Oil Companies (IOCs) and third parties rather than directly from Nigerian upstream producers.
According to him, this process often introduces additional premiums and transaction costs. These costs can drive crude prices above internationally recognized benchmarks published by agencies such as Platts and Argus. The impact affects the Dangote Refinery and similar buyers in import-dependent markets.
In many cases, domestically sourced crude is less competitive than alternatives on the international market. This dynamic persists even when quality is comparable, and it shapes procurement strategies for refineries. Industry analysts note that pricing gaps can constrain supply choices and long-term planning.
“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.
