Prosper Okoye
The Nigerian government is exploring plans to supply crude oil to the Dangote Petroleum Refinery through international third-party traders as it seeks to stabilise domestic fuel supply amid rising petrol prices, officials and industry sources said.
The move, coordinated by the state oil firm Nigerian National Petroleum Company Limited (NNPC), is aimed at ensuring the refinery has enough crude to maintain production of refined products for the local market.
However, officials cautioned that the arrangement may not immediately lower petrol prices for consumers already facing rising fuel costs across the country.
Petrol prices in Nigeria have climbed sharply in recent days, with refinery gantry prices rising from about 774 naira to 995 naira per litre. Retail prices at some filling stations have exceeded 1,000 naira per litre, with reports of pumps selling fuel for as much as 1,200 naira in some locations.
Join our WhatsApp ChannelIndustry sources also said the refinery briefly suspended the loading of Premium Motor Spirit (PMS), commonly known as petrol, fuelling speculation about a possible further increase in prices.
A senior NNPC official said the company was using its international trading network to secure additional crude supplies for the refinery.
“Leveraging our global crude trading network, we are sourcing third-party crude for the refinery at prices that are competitive with prevailing international market rates,” the official said.
The official added that the national oil company remained committed to supporting domestic refining.
“As the national oil company entrusted with safeguarding Nigeria’s energy security, NNPC Limited remains fully committed to supporting domestic refining, including the Dangote Petroleum Refinery,” the official said.
Sources at the refinery said global energy market pressures, particularly geopolitical tensions in the Middle East, were also affecting crude supply and pricing.
Oil prices have climbed amid tensions involving Iran and the United States, with concerns over disruptions around the Strait of Hormuz pushing benchmark Brent crude above $92 per barrel.
The refinery currently receives about five cargoes of crude monthly from NNPC under Nigeria’s naira-for-crude arrangement, far below the roughly 13 cargoes it requires to sustain domestic supply, according to industry sources.
As a result, it has increasingly relied on imported crude bought at international market rates.
Data from commodities analytics firm Kpler showed Nigeria’s imports of crude from the United States rose to 41.13 million barrels in 2025, up from 15.79 million barrels in 2024.
Energy analysts say the situation reflects Nigeria’s continued struggle to supply enough crude to local refineries despite being Africa’s largest oil producer.
Jeremiah Olatide, chief executive of petroleum price tracking platform Petroleumprice.ng, said restrictions on petrol import licences had also strengthened the refinery’s influence in the domestic market.
“About 90 percent of marketers who applied for PMS import permits were not issued approvals, largely to promote and encourage local refineries, particularly the Dangote refinery,” he said.
Analysts say the refinery has nevertheless helped cushion Nigeria from even steeper price increases.
“If the refinery was not operating, petrol prices in Nigeria could easily have reached 1,500 naira per litre,” Olatide said.
Meanwhile, the refinery has expanded the number of authorised fuel distributors from 13 to more than 30 companies to improve supply nationwide, including NIPCO Plc, MRS Oil Nigeria Plc, TotalEnergies Marketing Nigeria Plc and Conoil Plc.
Prosper Okoye is a Correspondent and Research Writer at Prime Business Africa, a Nigerian journalist with experience in development reporting, public affairs, and policy-focused storytelling across Africa
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