The Nigerian government, through Nigerian National Petroleum Company Limited, is working to secure crude oil for the Dangote Petroleum Refinery through international third-party traders to sustain domestic refining operations, officials and industry sources said.
The move comes as Nigerians face rising fuel prices following recent increases by the $20 billion refinery located in Lekki.
Officials warned that the intervention may not immediately lead to lower petrol prices for consumers.
Oil dealers and industry players said the refinery recently suspended the loading of Premium Motor Spirit, commonly known as petrol, fueling speculation that another price increase could be imminent.
If implemented, it would mark the third petrol price increase within a week. Gantry prices have already risen from 774 naira to 995 naira per liter, pushing pump prices above 1,000 naira per liter in several states. Some retail outlets now sell petrol for about 1,200 naira per liter.
Industry analysts say the situation has increased pressure on households and businesses already struggling with high transportation and production costs.
A senior official at NNPC, who spoke on condition of anonymity because he was not authorized to speak publicly, said the company was using its international trading network to secure additional crude supply for the refinery.
“Leveraging our global crude trading network, we are sourcing third-party crude for the refinery at prices that are competitive with prevailing international market rates,” the official said.
He added that the national oil company remained committed to supporting domestic refining.
“As the national oil company entrusted with safeguarding Nigeria’s energy security, NNPC Limited remains fully committed to supporting domestic refining, including the Dangote Petroleum Refinery,” the official said.
However, a refinery official said sourcing crude from international markets could keep petrol prices high due to rising global energy costs.
“The current Middle East crisis is affecting overall global energy prices — crude oil, LNG and other fuels — and that has implications for refined product pricing globally,” the official said.
The refinery currently receives about five cargoes of crude monthly from NNPC under the government’s naira-for-crude policy, significantly less than the 13 cargoes it requires to meet domestic supply needs.
“While we receive about five cargoes a month from NNPC, these fall short of the 13 cargoes required to support sales into Nigeria,” the refinery said.
Global energy markets have also been affected by tensions involving Iran and the United States, which have disrupted supply routes and pushed Brent crude prices above $92 per barrel. Concerns around the Strait of Hormuz, a critical global oil shipping route, have intensified price volatility.
Industry stakeholders say expanding crude supply to domestic refineries could help moderate petrol prices.
Eche Idoko, national publicity secretary of the Crude Oil Refinery Owners Association of Nigeria, said the naira-for-crude policy could influence local pricing if fully implemented.
“If the refinery receives the required crude under the policy, it will impact local prices,” Idoko said. “But as long as the refinery sources most of its feedstock from the United States and bypasses the Strait of Hormuz, those costs will likely be transferred to Nigerian consumers.”
He also urged the government to extend the policy to other domestic refineries to improve competition in the sector.
Energy analyst Jeremiah Olatide, chief executive officer of Petroleumprice.ng, said limited import permits for petrol marketers have also affected competition in the market.
“About 90% of marketers who applied for PMS import permits were not issued approvals, largely to promote local refineries, particularly the Dangote refinery,” he said.
Olatide said a balance between local refining and limited imports would strengthen energy security and stabilize prices.
He noted that despite rising costs, the operation of the Dangote refinery has prevented more severe price increases.
“If the refinery was not operating, petrol prices in Nigeria could easily have reached 1,500 naira per liter,” he said.
Market data also shows Nigeria’s increasing reliance on imported crude. According to Kpler analytics, crude imports from the United States to Nigeria rose to 41.13 million barrels in 2025, up from 15.79 million barrels in 2024 — a 161% increase.
In July 2025, the Dangote refinery imported about 590,000 barrels per day of crude, with 60% coming from U.S. light sweet crude and 40% from Nigerian grades.
Meanwhile, the Nigerian Upstream Petroleum Regulatory Commission said local refiners received 67.66 million barrels of crude between January and August 2025, far below the 123.48 million barrels they requested.
Despite the supply challenges, the Dangote refinery has expanded its distribution network to ensure continued fuel supply. The refinery recently increased the number of authorized fuel marketers from 13 to more than 30 companies nationwide.
The list includes NIPCO Plc, MRS Oil Nigeria Plc, TotalEnergies Marketing Nigeria Plc and Conoil Plc.
Analysts say the combination of global tensions, domestic supply constraints and regulatory policies continues to shape Nigeria’s fuel market, with petrol prices in major cities currently ranging between 1,030 naira and 1,100 naira per liter.
