Dangote Refinery in Nigeria to Receive at Least 16 Million Barrels of Domestic Crude in October

en.Wedoany.com Reported - On September 10, market sources indicated that Nigeria's Dangote Refinery has purchased at least 16 million barrels of Nigerian crude, scheduled for delivery in October 2026, equivalent to approximately 520,000 barrels per day. The procurement volume consists of the Nigerian National Petroleum Company's monthly supply quota and crude purchased by Dangote through tenders; the final total October procurement volume may still increase with subsequent purchases.

The Dangote Refinery currently has a crude processing capacity of approximately 700,000 barrels per day, and the 16 million barrels of Nigerian crude confirmed for October equates to a supply scale of about 520,000 barrels per day for that month. In August 2026, the refinery received approximately 565,000 barrels per day of Nigerian crude, nearly double the 2025 average of about 280,000 barrels per day.

Under the October supply arrangement currently in place, the Nigerian National Petroleum Company will provide Dangote with 8 cargoes of Nigerian crude and supply 1 cargo of U.S. WTI Midland crude. Dangote also purchased a second cargo of WTI Midland crude from another supplier through a spot tender, and obtained additional Nigerian crude through tenders, bringing the confirmed Nigerian crude procurement volume to at least 16 million barrels. The refinery has previously also purchased different crude grades from countries such as Libya and Guyana.

The supply of crude to local refineries in Nigeria is currently incorporated into the Domestic Crude Supply Obligation mechanism. Data from the Nigerian Upstream Petroleum Regulatory Commission shows that in the second quarter of 2026, the Dangote Refinery declared a crude demand of 63 million barrels, upstream producers offered it 68.1 million barrels of crude supply, and Dangote ultimately accepted 52.6 million barrels, equivalent to approximately 78% of the offered supply volume. During the same period, domestic refineries in Nigeria actually received 53.7 million barrels of crude and condensate supply.

This mechanism is implemented pursuant to Section 109 of the Petroleum Industry Act. The regulator consults monthly with crude producers and licensed local refineries, and then allocates to producers the volumes of crude and condensate they should provide to domestic refineries. Data from the regulator for the second quarter of 2026 also shows that the 68.1 million barrels of supply offered to Dangote accounted for approximately 98% of all supply offers to domestic refineries during the same period.