The Federal Government has introduced an automated crude oil trading platform designed to connect regulators, crude oil producers, refineries and oil marketers in a single system aimed at improving crude production, allocation, pricing and delivery to indigenous refineries.
Under the previous arrangement, stakeholders largely operated separately, making it difficult to negotiate, coordinate and ensure timely crude supply to refineries operating under the Domestic Crude Supply Obligation (DCSO) framework.
According to the latest report from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Dangote Refinery required 63 million barrels of crude oil in the second quarter of 2026, while producers offered 68.1 million barrels.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said the refinery eventually accepted 52.6 million barrels, representing 78 per cent of the volume offered.
Responding to the figures, the Group Vice President, Oil & Gas and Fertiliser at Dangote Industries Limited, Devakumar Edwin, said the company remained willing to buy Nigerian crude provided it is available in sufficient quantities and at competitive market prices.
He said the refinery must secure crude that supports sustainable operations and allows it to supply petroleum products to Nigerians at affordable and competitive prices.
A demonstration of the new trading platform presented to stakeholders in Lagos on Thursday showed that regulators, producers, refiners and traders would be able to conduct live trading and engagement, a move expected to reduce delays, disputes and other obstacles associated with supplying crude to local refineries.
Speaking to 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 meeting domestic demand for petroleum products and helping to reduce Nigeria’s dependence on imports.
He noted that Nigerians were relying more on locally refined products and expressed optimism that the country was moving toward becoming a net exporter of petroleum products as refining capacity expands.
Oyarekhua, however, identified crude oil supply as one of the major challenges facing refinery operators, adding that stakeholders were working with relevant authorities to address issues surrounding the DCSO framework.
He said the situation was gradually improving and expressed confidence that, with continued cooperation from regulators and better responses from producers, local refineries would receive the crude volumes needed to operate at optimal levels.
The CORAN president also said downstream operators were increasingly purchasing petroleum products from Nigerian refineries instead of importing them, describing the trend as a positive step for the sector.
He added that refinery owners and other stakeholders would continue collaborating to strengthen the domestic petroleum supply chain and improve the performance of the downstream industry.
