Nigeria’s state oil company, the Nigerian National Petroleum Company (NNPC), has increased the amount of crude oil it supplies to the Dangote Refinery.
Businessman Aliko Dangote said the refinery received 10 cargoes of crude oil in March.
Out of this, 60% was paid for in naira, while 40% was paid in dollars. This is an increase from the usual five cargoes the refinery had been receiving monthly since October 2024.
The Dangote Refinery, located in Lagos, has a capacity of 650,000 barrels per day and started operations in 2024. It was built to reduce Nigeria’s reliance on imported fuel, even though the country produces large amounts of crude oil.
Dangote explained that last month, the refinery got six cargoes paid in naira and four in dollars. He added that the refinery needs about 19 cargoes of crude oil each month to run at full capacity.
The increased supply from NNPC is meant to support fuel availability in Nigeria, especially as global supply chains have been affected by tensions in the Middle East.
Despite this increase, Dangote said international oil companies in Nigeria have not raised their supply to the refinery.
Instead, they prefer to sell crude to traders, forcing the refinery to buy at higher prices. He warned that higher costs of crude oil will lead to higher fuel prices for consumers.
On the positive side, the refinery is exporting more products. In March, it shipped 17 cargoes of petroleum products to other African countries. It is also producing materials like polypropylene, which are in high demand.
At full capacity, the refinery could meet Nigeria’s fuel needs and even export excess products. This could help the country save money on fuel imports and support the value of the naira.
