NNPC Moves to Secure Crude Supply for Dangote Refinery as Petrol Prices Rise Above N1,000
The Nigerian National Petroleum Company Limited has initiated strategic measures to secure crude oil supply for the Dangote Petroleum Refinery through international third-party traders, according to industry reports. This development comes as Nigerians grapple with escalating petrol prices that have surpassed N1,000 per litre in numerous locations across the country.
Securing Refinery Operations Through Global Networks
Officials familiar with the arrangement confirmed that NNPC is leveraging its extensive global trading connections to source crude oil for Africa's largest refinery. The move aims to ensure continuous refining operations despite significant challenges in accessing sufficient domestic crude supplies. A senior NNPC official, speaking anonymously due to authorization constraints, revealed that the company is procuring third-party crude at competitive international market rates through established trading networks.
The official emphasized NNPC's commitment to supporting local refining capacity as part of its mandate to safeguard Nigeria's energy security. However, industry sources caution that this arrangement may not immediately translate to reduced petrol prices for Nigerian consumers, given broader market dynamics.
Petrol Price Crisis Deepens Nationwide
Recent days have witnessed dramatic increases in petrol prices across Nigeria. Gantry prices reportedly surged from N774 per litre to N995 per litre, while numerous filling stations now sell petrol between N1,000 and N1,200 per litre. The Dangote refinery itself recently implemented two separate price adjustments within days, raising its ex-depot petrol price to N995 per litre from previous levels.
Industry observers note that the refinery has experienced temporary suspensions in Premium Motor Spirit loading operations, fueling speculation about potential further price increases. These developments occur against a backdrop of global energy market volatility, with Brent crude prices exceeding $92 per barrel due to geopolitical tensions in the Middle East affecting key oil transit routes like the Strait of Hormuz.
Supply Challenges and Policy Limitations
The Dangote refinery currently receives approximately five crude cargoes monthly from NNPC under the naira-for-crude policy, significantly below the thirteen cargoes required for optimal operational capacity. This substantial supply gap has compelled the refinery to purchase additional crude on international markets, contributing to production cost pressures.
Data from the Nigerian Upstream Petroleum Regulatory Commission reveals that domestic refiners received only 67.66 million barrels of crude between January and August 2025, far short of the 123.48 million barrels requested during that period. Meanwhile, Nigeria's crude imports from the United States increased dramatically by 161% in 2025, reaching 41.13 million barrels compared to 15.79 million barrels in 2024.
Industry Perspectives and Market Implications
Eche Idoko, spokesperson for the Crude Oil Refinery Owners Association of Nigeria, suggests that fully implementing the naira-for-crude policy could potentially influence petrol prices if the government supplies more crude to domestic refineries in local currency. However, he acknowledges that importing crude from international sources and transporting it through global shipping routes inevitably increases costs that may be passed to consumers.
Energy analyst Jeremiah Olatide, CEO of Petroleumprice.ng, highlights that restrictions on petrol import licenses have strengthened the Dangote refinery's market position, with nearly 90% of marketers who applied for import permits this year failing to receive approval. He recommends maintaining a balanced approach where imports constitute 20%-25% of Nigeria's petrol supply while local refineries provide the remainder.
Industry stakeholders generally agree that expanding domestic crude supply to local refineries could help moderate fuel prices over time. Some analysts advocate extending the naira-for-crude policy to other domestic refineries to encourage market competition and enhance supply stability.
The ongoing supply challenges, combined with global market pressures and domestic policy limitations, continue to shape Nigeria's complex energy landscape as consumers face unprecedented petrol prices.
