FG presents trading platform for crude oil supply to Dangote Refinery, others,
— As plants reduce reliance on imports — CORAN President
By Udeme Akpan, Energy Editor & Olakunle Oke
The Federal Government has created an automated crude oil trading platform bringing together industry regulators, crude oil producers, refineries and oil marketers to enhance crude oil production, allocation, pricing and delivery to indigenous refineries in the country.
Before now, the different parties operated in silos, making it difficult to engage, reach agreements and take seamless actions aimed at ensuring adequate and timely crude oil supply and smooth operations of refineries under the Domestic Crude Supply Obligation (DCSO) framework.
In its latest report, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, said the Dangote Refinery required 63 million barrels of crude oil in the second quarter of 2026, while producers offered higher volumes of 68.1 million barrels.
“Eventually, 52.6 million barrels were accepted by the Dangote Refinery. This implies that the refinery only accepted 78 per cent of what it was offered,” the NUPRC stated.
In his response, the Group Vice President, Oil & Gas and Fertiliser, Dangote Industries Limited, Devakumar Edwin, said the company remained willing to purchase Nigerian crude oil, provided it was available in sufficient volumes and at competitive market prices.
“Our position is straightforward. We are ready and willing to purchase Nigerian crude oil, provided it is available in sufficient volumes and at competitive market prices. Like every refinery, we must procure crude that supports sustainable operations and value creation.
“This is essential to maintaining the economics of domestic refining and enabling us to deliver petroleum products to Nigerians at affordable and competitive prices,” he said.
However, a demonstration of the crude oil trading platform presented to stakeholders in Lagos on Thursday showed that regulators, oil and gas producers, refiners and traders would be able to engage in live trading, potentially removing some of the hurdles and disagreements associated with crude oil supply to local refineries.
Speaking with Vanguard, the President of the Crude Oil Refinery-Owners Association of Nigeria (CORAN) and Chairman of OPAC Refineries, Momoh Jimah Oyarekhua, said local refineries were increasingly meeting domestic demand for petroleum products, significantly reducing Nigeria’s reliance on imports.
Oyarekhua said Nigerians were increasingly relying on products refined locally, a development he said was helping to strengthen domestic production.
According to him, Nigeria is already on track to becoming a net exporter of petroleum products as local refining capacity continues to grow.
“We are doing very well. Today, I think we have brought down importation significantly. At least Nigerians are relying more on internal production of petroleum products like it used to be some years back,” Oyarekhua said.
He, however, identified crude oil supply as one of the major challenges affecting refinery operators in the country.
Oyarekhua said the issue of the Domestic Crude Supply Obligation was one of the reasons stakeholders were engaging with relevant authorities, adding that the challenges were gradually being resolved.
He expressed optimism that, with continued cooperation from regulators and improved responses from crude oil producers, refineries would increasingly receive the crude volumes required to operate at optimal capacity.
“Gradually, we are seeing that those problems are being solved, but we are thinking with time, this is going to be completely optimised and all the refineries will of course get the crude that they require,” he said.
On measures to move the downstream petroleum sector in the right direction, the CORAN president said refinery owners and other stakeholders were working together to strengthen the domestic supply chain.
He noted that most downstream players were increasingly buying petroleum products from Nigerian refineries rather than importing them, describing the development as the desired direction for the sector.
Oyarekhua said stakeholders would continue to engage and collaborate with downstream operators to ensure that the sector improves steadily.
The post FG presents trading platform for crude oil supply to Dangote Refinery, others appeared first on Vanguard News.
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According to him, Nigeria is already on track to becoming a net exporter of petroleum products as local refining capacity continues to grow.
The post FG presents trading platform for crude oil supply to Dangote Refinery, others appeared first on Vanguard News.
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