Dangote Petroleum Refinery and Petrochemicals has addressed claims from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) regarding the rejection of 15.5 million barrels of oil. The refinery maintains its commitment to the Domestic Crude Supply Obligation (DCSO) but insists that local oil must be both physically accessible and priced competitively to remain viable.
Devakumar Edwin, the Group Vice President for Oil & Gas at Dangote Industries Limited, explained that the core problem is not the nominal volume of crude offered, but the amount actually available for purchase at sustainable prices. He noted that the refinery frequently faces offers well above global benchmarks. These inflated costs, often driven by intermediaries, make local crude more expensive than imported alternatives.
Since the DCSO framework began, the refinery has struggled to purchase directly from local producers, frequently relying on third parties and International Oil Companies instead. This indirect procurement adds layers of costs that eventually increase the price of fuel for Nigerian consumers. Furthermore, Edwin pointed to flaws in the Petroleum Industry Act that allow suppliers to withdraw from deals without consequence, creating supply uncertainty.
The company reports that beyond NNPC contracts, it has successfully negotiated very few DCSO cargoes. In many cases, the oil had already been promised to other buyers before talks even began. Dangote Refinery emphasized that transparency and market efficiency are essential to achieving Nigeria’s energy security and reducing the nation’s dependence on imports.
