The Nigerian National Petroleum Company Limited has increased crude oil supply to the Dangote Petroleum Refinery and Petrochemicals, allocating seven cargoes for May loading in a move aimed at strengthening domestic refining output.
Industry sources cited by Reuters said the revised allocation marks an increase from the five cargoes the refinery had consistently received in previous months. Supply for April is, however, expected to remain at five cargoes.
The adjustment comes amid sustained pressure on Nigeria’s fuel market, where rising petrol prices and supply constraints have heightened the need for improved local refining capacity. The Dangote refinery, which has been scaling operations, has repeatedly flagged challenges in securing sufficient domestic crude to meet its processing requirements.
Market data indicates that the 650,000 barrels-per-day facility requires between 13 and 15 cargoes monthly to operate at optimal capacity. Current allocations, even with the planned increase to seven cargoes in May, remain significantly below that threshold.
To bridge the gap, the refinery has continued to source crude from international markets, exposing it to price volatility linked to global supply disruptions, particularly those associated with geopolitical tensions in the Middle East.
Officials familiar with the supply arrangement said the national oil company has been leveraging its trading network to secure additional third-party crude at competitive rates, as part of broader efforts to support domestic refining and maintain energy security.
Despite these efforts, limited feedstock availability has continued to influence refinery operations and pricing dynamics in the downstream sector. Petrol prices have climbed to elevated levels in recent months, reflecting both higher crude costs and constrained supply conditions.
Although the Dangote refinery has increased its contribution to local fuel supply, it is still estimated to be covering just over two-thirds of Nigeria’s daily petrol demand, which stands at roughly 60 million litres.
Analysts note that the decision to boost crude allocation to the refinery could also have implications for Nigeria’s export volumes. Redirecting more crude to domestic processing may reduce shipments to international buyers at a time when global supply remains tight.
While the increased allocation signals progress, market participants say sustained and higher-volume supply will be critical to unlocking the refinery’s full capacity, stabilising domestic fuel prices, and reducing reliance on imports over the long term.