Dangote Petroleum Refinery has responded to Nigerian Upstream Petroleum Regulatory Commission (NUPRC) data suggesting it rejected 15.5 million barrels of crude offered by local producers in the second quarter of 2026. NUPRC's disclosure did not specify which producers were involved or the grounds for rejection, and the commission had not responded to requests for comment as of press time.
Group Vice President, Oil & Gas and Fertiliser at Dangote Industries, Devakumar Edwin, said the issue is not the volume nominally offered under the Domestic Crude Supply Obligation (DCSO) framework, but how much is genuinely available on commercially viable terms. "Our position is straightforward. We are ready and willing to purchase Nigerian crude oil, provided it is available in sufficient volumes and at competitive market prices," he said.
Edwin said the refinery has struggled to secure crude directly from domestic producers since the DCSO framework began, forcing it to rely on international oil companies and third parties instead, a route that adds premiums pushing prices above Platts and Argus benchmarks and raising the eventual cost of refined products locally.
He said Dangote supports the DCSO policy's intent but takes issue with gaps in its implementation, including Petroleum Industry Act provisions that allow counterparties to withdraw from negotiations without structured review or safeguards. Excluding NNPC term contracts, the refinery said it has concluded only a limited number of DCSO cargo negotiations, with several cargoes reportedly already committed to other buyers before talks began. The company is calling for greater transparency and more commercially sustainable supply arrangements.