The Federal Government has introduced an automated crude oil trading platform designed to connect crude producers, regulators, refineries and oil marketers in a single marketplace, as Nigeria seeks to improve the supply of crude to domestic refineries.
The platform, demonstrated to industry stakeholders in Lagos on Thursday, will allow participants to conduct live transactions and coordinate crude allocation, pricing, sales and delivery, potentially reducing some of the disputes and delays that have affected crude supplies to local refineries.
The initiative comes as domestic refining gains momentum and operators increasingly seek to reduce Nigeria’s dependence on imported petroleum products. However, crude availability remains a major constraint for refinery operators, particularly under the Domestic Crude Supply Obligation (DCSO).
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said in its latest report that the Dangote Petroleum Refinery required 63 million barrels of crude during the second quarter of 2026, while producers offered 68.1 million barrels.
Of the volume offered, however, the refinery accepted 52.6 million barrels, representing 78 per cent of the crude made available to it.
Dangote Industries Limited’s Group Vice President, Oil & Gas and Fertiliser, Devakumar Edwin, said the refinery remained prepared to buy Nigerian crude but stressed that supplies must meet its volume and commercial requirements.
“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,” Edwin said.
He added that securing competitively priced crude was necessary to sustain refinery operations and enable the company to supply petroleum products to Nigerians at competitive prices.
The new trading platform could therefore provide a more structured channel for resolving some of the supply challenges by giving producers, refiners, regulators and traders direct access to market information and transaction opportunities.
The development also comes as locally refined petroleum products gain a larger share of Nigeria’s domestic market.
President of the Crude Oil Refinery-Owners Association of Nigeria (CORAN) and Chairman of OPAC Refineries, Momoh Jimah Oyarekhua, said the growth in domestic refining had significantly reduced the country’s reliance on imported petroleum products.
Oyarekhua said consumers were increasingly sourcing products from Nigerian refineries, adding that the trend could move the country closer to becoming a net exporter of refined petroleum products as additional refining capacity comes on stream.
“We are doing very well. Today, I think we have brought down importation significantly. At least Nigerians are relying more on internal production of petroleum products like it used to be some years back,” he said.
He nevertheless identified crude supply as one of the key issues still limiting refinery operators, particularly the implementation of the DCSO.
According to him, refinery operators and other stakeholders have continued to engage regulators and crude producers to address the difficulties surrounding domestic crude supply.
He expressed confidence that greater cooperation among the parties would eventually enable refineries to obtain the crude volumes needed to operate closer to their capacity.
“Gradually, we are seeing that those problems are being solved, but we are thinking with time, this is going to be completely optimised and all the refineries will of course get the crude that they require,” Oyarekhua said.
He said collaboration across the downstream value chain was also increasing, with more petroleum marketers purchasing products from Nigerian refineries instead of relying on imports.
The CORAN president said sustained cooperation among refinery owners, regulators, producers and downstream operators would be critical to strengthening domestic refining and ensuring that the sector continues to improve.