NNPC Turns to Foreign Crude to Support Dangote Refinery

NNPC Turns to Foreign Crude to Support Dangote Refinery

The Federal Government, through the Nigerian National Petroleum Company Limited (NNPC), has begun sourcing crude oil from international traders to sustain operations at the Dangote Petroleum Refinery, amid mounting fuel price hikes.

Officials cautioned that the intervention may not immediately lower petrol prices, which have already surged past ₦1,000 per litre in many states, with some stations selling at ₦1,200/litre.

The refinery recently suspended loading of petrol twice within a week, sparking fears of another price increase. Gantry prices have jumped from ₦774 to ₦995 per litre, intensifying economic pressures.

Global tensions, particularly the Iran–US conflict, have disrupted supply chains and pushed Brent crude above $92 per barrel, making crude sourcing more expensive. NNPC said it is leveraging its global trading network to secure third-party crude at competitive rates. “We remain fully committed to supporting domestic refining, including the Dangote refinery,” an NNPC official told The PUNCH.

Dangote refinery sources noted that international crude purchases may not ease pump prices, as the facility receives only five cargoes monthly from NNPC, instead of the 13 required under the naira-for-crude policy. Additional costs linked to its free trade zone location add $5–$7 per barrel to pricing.

Industry stakeholders, including Eche Idoko of CORAN, stressed that full implementation of the naira-for-crude policy could stabilise prices, while analysts warned that limited import licences have given Dangote dominant market influence.

Despite challenges, experts say the refinery has cushioned Nigeria from worse outcomes. “If the refinery was not operating, petrol prices could easily have reached ₦1,500 per litre,” said Jeremiah Olatide of Petroleumprice.ng.

Recent data show Nigeria’s crude imports from the US surged 161% in 2025, underscoring the paradox of Africa’s top oil producer relying heavily on foreign crude to feed its largest refinery.