The Nigerian government has introduced an automated crude oil trading platform designed to unify industry regulators, oil producers, refineries, and marketers. This digital initiative aims to improve production, pricing, and the delivery of crude to local refineries, replacing the previous fragmented system that often hindered the Domestic Crude Supply Obligation (DCSO) framework.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) indicated that for the second quarter of 2026, the Dangote Refinery required 63 million barrels of crude, with producers offering 68.1 million. Ultimately, the refinery accepted 52.6 million barrels. Devakumar Edwin, a Group Vice President at Dangote Industries Limited, confirmed that the firm remains committed to sourcing local crude, provided the volumes are sufficient and the pricing remains competitive for sustainable operations.
A demonstration of the new platform in Lagos highlighted its ability to facilitate live trading among stakeholders, which is expected to mitigate supply hurdles. Momoh Jimah Oyarekhua, President of the Crude Oil Refinery-Owners Association of Nigeria (CORAN), noted that local refineries are increasingly meeting domestic fuel needs, effectively lowering Nigeria’s dependence on imports. While crude supply logistics remain a challenge, Oyarekhua expressed optimism that ongoing cooperation between regulators and producers will soon enable refineries to operate at peak capacity.
