Dangote Refinery Clarifies Crude Oil Supply Rejection

Dangote Petroleum Refinery and Petrochemicals has refuted claims that it rejected 15.5 million barrels of crude oil offered by local producers under the Domestic Crude Supply Obligation (DCSO) framework in the second quarter of 2026. The refinery stated that the rejection was not due to the volume offered but rather the actual availability of the crude and whether it was supplied under commercially viable terms.

This clarification followed reports from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) indicating the non-acceptance of the crude. Devakumar Edwin, Group Vice President of Oil & Gas and Fertiliser at Dangote Industries Limited, emphasized the need for adequate volumes of domestic crude at competitive prices to sustain local refining and ensure affordable petroleum products for Nigerians.

He noted that the refinery has faced challenges in securing crude directly from domestic producers, often sourcing it through International Oil Companies (IOCs) and third parties, which can increase costs and affect the economics of domestic refining.