Officials of the Dangote Petroleum Refinery have dismissed reports that the Nigerian National Petroleum Company Limited (NNPC) allocated seven crude cargoes to the facility for May 2026. Senior executives at the refinery confirmed ongoing discussions with NNPC but stated they had not been informed of any increase beyond the usual supply.
Earlier in the week, trader sources told Reuters that NNPC had raised crude supply to the refinery, allocating seven cargoes for May loading. This was said to be an increase from the five cargoes the refinery had been receiving in recent months. However, Dangote officials clarified that their May allocation stands at about 6.15 million barrels, equivalent to six cargoes, not seven.
One official explained, “Our May allocation is about 6.15 million barrels. The report of seven cargoes’ allocation is not clear yet.” Another added that the refinery continues to appeal for more crude, as its monthly requirement is nearly 20 million barrels.
The Dangote Refinery, with a capacity of 650,000 barrels per day, requires about 19 cargoes monthly to operate optimally. Each cargo contains roughly one million barrels. Yet, allocations have consistently fallen short.
– October 2025: 4.55 million barrels
– November 2025: 6.45 million barrels
– December 2025: 4.30 million barrels
– January 2026: 5.65 million barrels
– February 2026: 4.66 million barrels
– March 2026: around 6 million barrels
The refinery insists that the shortfall hampers its ability to stabilize domestic fuel supply.
The refinery has raised petrol pump prices above N1,200 per litre in recent weeks, citing difficulties in securing local crude. Officials argue that domestic producers have failed to meet supply obligations under the Petroleum Industry Act, forcing the refinery to rely on imported crude purchased at international market prices.
Dangote Group explained that while it receives about five cargoes monthly from NNPC, these are priced at global benchmarks plus premiums. The refinery pays in naira but at international rates, which it says undermines affordability. Additional crude sourced from international traders comes with further premiums, compounding costs.
Sources within NNPC confirmed that efforts are underway to increase crude supply to the refinery. They said the company is leveraging its global trading network to source third-party crude at competitive rates.
A senior NNPC official stated, “As the national oil company entrusted with safeguarding Nigeria’s energy security, NNPC Limited remains fully committed to supporting domestic refining, including the Dangote Petroleum Refinery. Within the framework of our existing agreements, we continue to facilitate crude supply to DRP in the face of temporary availability constraints.”
The ongoing conflict in the Middle East, particularly the closure of the Strait of Hormuz, has disrupted global oil supply and driven up prices. This has intensified pressure on Nigeria’s domestic fuel market. Economists warn that without stable crude allocations to the Dangote refinery, fuel prices could continue to rise, worsening inflation.
Bismarck Rewane, a leading economist, suggested that the Federal Government consider selling crude to the refinery at a fixed price. He argued that such an arrangement could help stabilize refined product prices and prevent further inflationary shocks.
Despite challenges, the Dangote refinery remains a critical supplier of petroleum products. Many countries are looking to it for aviation fuel and diesel, both of which have become increasingly expensive worldwide. The refinery’s ability to meet demand depends heavily on consistent crude allocations.
The Dangote Petroleum Refinery has denied reports of receiving seven crude cargoes for May, confirming instead an allocation of about six cargoes. With a monthly requirement of nearly 20 cargoes, the refinery continues to face significant supply shortfalls. Rising global oil prices and limited local supply have forced it to increase fuel prices, sparking concerns about inflation.
NNPC insists it is committed to supporting domestic refining and is working to secure additional crude through its trading network. Analysts believe that policy interventions, such as fixed-price crude sales, may be necessary to stabilize Nigeria’s fuel market. The refinery’s role remains pivotal, not only for Nigeria’s energy security but also for regional fuel supply.
