Dangote Petroleum Refinery has accused International Oil Companies of selling Nigerian crude through third parties, leading to higher transaction costs that undermine domestic refining economics. The refinery's Group Vice President, Oil & Gas and Fertiliser, Devakumar Edwin, made the remarks in a statement issued Tuesday, clarifying earlier reports based on Nigerian Upstream Petroleum Regulatory Commission data showing 15.5 million barrels of crude were reportedly rejected by the refinery in Q2 2026. Edwin stated the refinery remains committed to sourcing Nigerian crude under the Domestic Crude Supply Obligation framework but faces challenges securing adequate volumes at competitive prices.
Edwin explained that a significant portion of crude allocated under the DCSO has been sourced through IOCs and intermediaries rather than directly from local producers. This, he said, introduces additional premiums and transaction costs that push prices above international benchmarks like Platts and Argus. As a result, Nigerian crude becomes less competitive compared to supplies on the global market. He emphasized that the issue is not the volume offered on paper but the actual availability of crude at commercially viable rates. Higher acquisition costs, he added, are passed on to consumers through more expensive refined petroleum products.
The clarification follows new NUPRC data showing 53.7 million barrels of domestic crude were supplied to local refineries in the second quarter. Edwin reiterated Dangote's willingness to buy Nigerian crude if it meets volume and pricing requirements. The refinery has previously alleged that some IOCs and government agencies have engaged in crude denial, undermining local refining efforts.
The refinery claims to want Nigerian crude but depends on intermediaries to obtain it, even as it criticizes the cost structure those same channels create. If domestic crude is being sold through third parties at inflated prices, Nigerian consumers pay more at the pump despite the resource being locally available. This gap between policy intent and market reality affects the affordability of fuel for ordinary citizens.
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