By Ene Rebecca Adah
April 1, 2026
Nigeria has increased crude oil supply allocations to the Dangote Petroleum Refinery for May loading, in a move aimed at easing feedstock shortages and stabilising domestic fuel production.
Industry sources disclosed that the Nigerian National Petroleum Company raised the number of crude cargoes allocated to the refinery from five to seven for the month, marking a modest increase in supply. The refinery, regarded as Africa’s largest with a capacity of about 650,000 barrels per day, has faced persistent challenges sourcing sufficient crude locally.
Despite the increased allocation, supply remains below the refinery’s estimated requirement of between 13 and 15 cargoes per month for optimal capacity utilisation, with negotiations for additional volumes said to be ongoing.
The plant has in recent months relied more on imported crude due to domestic supply constraints, a situation further complicated by global market disruptions and rising premiums in international oil markets.
Analysts say sourcing crude locally is more cost-effective due to lower freight costs, making the increased allocation a critical relief measure for the refinery’s operations. The refinery has continued to expand its contribution to Nigeria’s fuel market and is currently supplying a significant share of the country’s daily petrol demand, estimated at about 60 million litres.
However, rising crude costs have exerted pressure on fuel prices, with depot prices reportedly increasing in recent weeks. This trend underscores the continued influence of global oil market volatility on domestic fuel pricing, even as local refining capacity improves.
The development comes amid persistently high fuel prices in Nigeria, driven by supply shocks and limited reserves. While the refinery was expected to reduce the country’s dependence on imported refined products, its operations remain tied to international crude pricing dynamics and availability.
Market observers note that the increased allocation signals a growing commitment by authorities to support domestic refining, though sustained improvements in crude supply will be necessary for the refinery to operate at full capacity and deliver long-term relief to consumers. The NNPC has yet to officially comment on the latest development.
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