NM
Nigerian National Petroleum Company Limited may begin supplying foreign crude oil to the Dangote Petroleum Refinery in an effort to sustain local refining operations as fuel prices continue to rise across Nigeria.
Findings indicate that the Federal Government, through NNPC Ltd, is exploring arrangements with third-party international traders to secure crude supply for the refinery. The move is intended to ensure consistent feedstock for the plant and support domestic fuel production.
Industry officials, however, warned that the intervention may not immediately lead to lower petrol prices for consumers, who are already grappling with rising fuel costs nationwide.
Market data also shows a shift in Nigeria’s crude sourcing pattern. According to analytics firm Kpler, exports of crude oil from the United States to Nigeria rose sharply to 41.13 million barrels in 2025, up from 15.79 million barrels in 2024, indicating increasing reliance on imported crude for refinery operations.
In July 2025, the Dangote refinery reportedly imported about 590,000 barrels per day of crude, with 60 percent sourced from U.S. light sweet crude and 40 percent from Nigerian grades, marking the first time foreign crude surpassed domestic supply for the refinery.
Analysts say the trend highlights the paradox of Africa’s largest oil producer relying on imported crude despite local production, largely due to supply constraints and compatibility issues with certain refining processes.
Meanwhile, petrol prices have climbed above ₦1,000 per litre in major cities, pushing transport fares higher and raising concerns about the broader impact on Nigeria’s economy.
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Oyetoke Adedayo Ebenezer
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