The Dangote Petroleum Refinery has received a fresh shipment of crude oil from the Federal Government, marking a significant step toward strengthening local refining capacity and reducing Nigeria’s dependence on fuel imports.
Industry sources confirmed on Friday, March 14, that the crude delivery to the $20 billion Lekki-based refinery is expected to enhance production, ensuring a steady supply of petroleum products to the domestic market.
A senior official at the Nigerian National Petroleum Company Limited (NNPCL) verified the shipment, stating, “All cargoes have been released to Dangote Refinery, and the vessels have sailed to the refinery.” The increased supply aligns with the government’s broader strategy to support local refiners and improve energy security.
Meanwhile, the refinery has adjusted its petrol loading gantry price, lowering it from ₦825 per litre to ₦815 per litre, reflecting shifting market dynamics and increasing competition in the downstream sector.
A major oil marketer, speaking anonymously, suggested that petrol prices could soon fall below ₦800 per litre, attributing the decline to deregulation and enhanced market competition.
Despite the recent delivery, industry insiders revealed that crude shipments intended for the Dangote Refinery were delayed at sea last week due to uncertainties surrounding the naira-for-crude policy.
The delay coincided with a March 13 meeting of the Technical Sub-Committee on the policy, where government officials reviewed crude allocations and discussed the future of domestic refining.
At the meeting:
- NNPCL presented a report detailing crude deliveries to local refineries, including Dangote, Warri, and Port Harcourt refineries.
- The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) provided updates on domestic refining activities.
- The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) assessed crude availability for local processors.
Additionally, the NNPCL has begun negotiations with Dangote Refinery to renew the naira-for-crude agreement, set to expire on March 31, 2025.
Industry analysts emphasize that market competition and deregulation remain key drivers of falling petrol prices. “Local refiners must keep their prices competitive, as long as imports are allowed. If imports stop, there will be no incentive to keep prices low,” one oil marketer explained.
He urged regulatory agencies to maintain a balanced approach, ensuring that local production, imports, and domestic consumption align for market stability.
While local refining presents a long-term economic advantage, experts stress that strict oversight is needed to ensure fuel quality and fair pricing in a fully deregulated market.
