FG Launches Crude Oil Trading Platform for Dangote Refinery, Local Refineries
The Federal Government has introduced an automated crude oil trading platform designed to improve the supply, allocation, pricing and delivery of crude oil to Dangote Refinery and other indigenous refineries in Nigeria.
The platform brings together key players across the petroleum industry, including regulators, crude oil producers, refinery operators and oil marketers, creating a central marketplace where stakeholders can interact and conduct transactions.
The initiative is expected to address some of the challenges that have affected crude oil supplies to domestic refineries under the Domestic Crude Supply Obligation (DCSO) framework.
Previously, many of the stakeholders involved in crude oil supply operated independently, making negotiations, agreements and the implementation of supply arrangements more difficult.
Dangote Refinery sought 63 million barrels in Q2
The development comes amid continued discussions over the availability of Nigerian crude for local refineries.
According to a recent report from the petroleum sector regulator, the Dangote Refinery required about 63 million barrels of crude oil during the second quarter of 2026.
Producers, however, offered a higher volume of approximately 68.1 million barrels during the period.
Despite the larger volume offered, the refinery eventually accepted 52.6 million barrels, representing about 78 per cent of the crude volume offered to it.
The figures highlight the complexity surrounding crude procurement, including issues relating to availability, pricing, commercial terms and the quality of crude required by individual refineries.
Dangote insists on competitive crude prices
Devakumar Edwin, Group Vice President, Oil & Gas and Fertiliser at Dangote Industries Limited, said the company remained prepared to purchase Nigerian crude whenever sufficient volumes were available at competitive market prices.
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He explained that securing crude at commercially sustainable prices was important to the continued operation of domestic refineries.
According to Edwin, refineries must obtain crude that supports sustainable operations and value creation while allowing them to supply petroleum products to Nigerians at competitive prices.
The position underscores the importance of balancing crude availability with market conditions as Nigeria seeks to expand its domestic refining capacity.
New platform could improve crude supply process
A demonstration of the new trading platform was presented to stakeholders in Lagos on Thursday.
The system is expected to enable regulators, crude producers, refinery operators and traders to interact through live trading, potentially reducing some of the delays, disagreements and coordination challenges associated with crude oil transactions.
By bringing the various participants onto a common platform, the government hopes to make the process of allocating and purchasing crude oil more transparent and efficient.
The development is particularly significant as Nigeria continues its drive to reduce dependence on imported refined petroleum products.
Local refineries reducing dependence on imports
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 supplying the domestic market.
Oyarekhua said the growth in local refining was helping Nigeria reduce its dependence on imported petroleum products.
He expressed optimism that the country was moving towards becoming a net exporter of refined petroleum products as more refining capacity becomes available.
According to him, Nigerians are increasingly relying on products manufactured by local refineries, representing an important shift for the country’s downstream petroleum sector.
Crude availability remains a major challenge
Despite the progress being recorded in domestic refining, Oyarekhua identified access to crude oil as one of the major challenges facing refinery operators.
He said issues surrounding the implementation of the Domestic Crude Supply Obligation had remained a key area of discussion between refinery owners, crude producers and government authorities.
However, he noted that the situation was gradually improving as stakeholders continued to engage with one another.
Oyarekhua expressed confidence that continued cooperation between regulators and crude oil producers would eventually enable domestic refineries to secure the volumes needed to operate closer to their optimal capacity.
He said stakeholders were already seeing improvements and expected the outstanding supply challenges to be resolved progressively.
Stakeholders push for stronger domestic petroleum supply chain
The CORAN president also said refinery owners and other downstream industry participants were working together to strengthen Nigeria’s domestic petroleum supply chain.
He noted that more downstream operators were purchasing petroleum products from Nigerian refineries rather than relying heavily on imports.
According to him, the increasing preference for locally refined products represents the direction the industry should continue to pursue.
The new crude oil trading platform could therefore play an important role in improving coordination between crude producers and domestic refineries, particularly as Nigeria seeks to increase local refining and reduce its dependence on imported petroleum products.
With greater transparency in crude transactions and improved coordination among industry stakeholders, the government hopes the platform will help address supply bottlenecks and support the continued expansion of Nigeria’s refining industry.
