Dangote Petroleum Refinery and Petrochemicals has addressed recent reports regarding data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which indicated the facility turned down 15.5 million barrels of domestic crude during the second quarter of 2026. The company maintains that it fully supports the Domestic Crude Supply Obligation (DCSO) framework and the purchase of Nigerian oil.
Devakumar Edwin, Group Vice President at Dangote Industries Limited, explained that the core concern is not just the nominal volume offered, but whether that supply is genuinely reachable and cost-effective. The refinery has frequently reported hurdles in obtaining sufficient domestic crude, noting that some offers are priced well above international market benchmarks.
Edwin stated that the refinery remains eager to procure local oil, provided it is available in adequate quantities and at competitive rates. He pointed out that the current process often forces the refinery to source crude through third parties and International Oil Companies rather than direct producers. These intermediaries frequently add premiums and extra transaction expenses, causing domestic oil to become more expensive than international alternatives. Consequently, these elevated acquisition costs can ultimately lead to higher prices for refined petroleum products for Nigerian consumers.
