The Nigerian National Petroleum Company Limited (NNPCL) has clarified its position on crude oil supply to Dangote Refinery, stating that it will continue to provide crude on a commercially viable "willing buyer and willing seller basis."
NNPCL Group Chief Executive Officer, Bayo Ojulari, made this known during a recent interview with Bloomberg, where he addressed concerns about domestic crude oil supply to Africa's largest refinery.
Ojulari emphasized that Dangote Refinery, as a commercial entity, has the flexibility to import crude for its operations. "First of all, Dangote Refinery is a commercial investment, so the refinery has the flexibility to import crude for its survival," he stated.
The NNPCL chief acknowledged the need for improvement in domestic crude supply to the refinery. "If you look at it commercially, we have to do more to ensure that there is a balance in terms of the crude coming from domestic; we are working on that, and we think that will improve," Ojulari said.
He further explained that the government aims to reduce its dominance in private sector businesses. "What we want to do is move away from government domination in private sector businesses. We want the private to have the freedom. If Nigeria is to provide crude oil supply to Dangote Refinery, it will be on a commercially willing buyer and willing seller basis."
Dangote's Domestic Crude Supply Target
This development comes as Devakumar Edwin, President of Dangote Industries, recently revealed to Bloomberg that the refinery aims to achieve 100 percent domestic crude supply by the end of December 2025, signaling a move away from importing crude from the United States and other countries.
The relationship between NNPCL and Dangote Refinery has been evolving since July last year when President Bola Ahmed Tinubu directed crude oil sales to the refinery to be conducted in Naira. This initiative was implemented in October 2024.
In April 2025, the Nigerian government's Technical Sub-Committee on the Crude and Refined Product Sales in Naira announced that the initiative would continue indefinitely, highlighting the government's commitment to supporting domestic refining capacity.
The Dangote Refinery, with its 650,000 barrels per day capacity, represents a significant milestone in Nigeria's quest for energy self-sufficiency and has the potential to transform the country from a net importer to an exporter of refined petroleum products.
Industry analysts suggest that a stable domestic crude supply arrangement between NNPCL and Dangote Refinery would be crucial for the sustainability of Nigeria's downstream petroleum sector and could potentially lead to more stable fuel prices in the local market.
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