Gulf War: NNPC Doubles Crude Supply To Dangote Refinery

| We need 19 cargoes for optimal operations – Aliko

Nigeria’s state oil firm, the Nigerian National Petroleum Company (NNPC), has doubled crude oil deliveries to Dangote Refinery, raising it to 10 cargoes in March, with 60 per cent paid in naira and 40 per cent in dollars, Aliko Dangote has confirmed.

The 650,000 barrels-per-day facility sited in Lagos, Africa’s largest, began operations in 2024.

Commissioned by Dangote Group, controlled by Africa’s richest person, Aliko Dangote, and worth $32.5 billion per Bloomberg Billionaires Index, it aims to end Nigeria’s decades-long dependence on imported fuel despite the country being Africa’s top oil producer.

Speaking to reporters at a briefing, Dangote said: “Last month, they gave us six cargoes for naira and four cargoes for dollars,” according to Bloomberg.

This marks a jump from an average of five monthly cargoes since October 2024, when the NNPC and Dangote inked a landmark deal.

Under it, the NNPC committed to supplying crude payable in naira, bypassing dollar shortages that have long plagued Nigeria’s economy amid foreign exchange crises.

The aim of the increased supply is to bolster domestic fuel amid disruptions from the US-Israel attack on Iran and the ensuing Iran war, which has hit Middle East shipments.

The ramp-up supports domestic fuel security after the US-Israel attack on Iran sparked war, disrupting Persian Gulf shipments and global chains.

Nigeria, which imports 90 per cent of its refined products despite pumping 1.4 million barrels daily, has faced shortages and price hikes.Yet supplies lag.

“We need 19 (cargoes) to operate

at full capacity,” Dangote noted.

The refinery bridges the gap by importing from the US and other African countries.

Dangote noted that international oil companies in Nigeria had not upped supplies, preferring to sell to traders, forcing the refinery to repurchase at premiums.

“The higher we pay, the higher the cost of petroleum products will be, because we have to pass on the cost,” he warned.

However, the refinery is experiencing a boom on the export side.

The refinery shipped 17 cargoes of petroleum products to other African nations in March. Many now depend on it amid Gulf conflict fallout, Dangote said, adding that it also produces scarce polypropylene for plastics and auto parts, which are in high demand due to Middle East shortages.

At its peak, Dangote Refinery could cover Nigeria’s needs and export surplus, potentially saving billions in import bills and stabilising the naira.