The Nigerian National Petroleum Company Limited (NNPC Ltd) has commenced high-level discussions with international oil companies and indigenous producers aimed at increasing crude oil production, as shifting supply dynamics driven by the Dangote Petroleum Refinery continue to redefine Nigeria’s domestic fuel market.
Findings indicate that the talks are focused on expanding crude availability for local refineries and easing pressure on petrol prices as competition for feedstock intensifies.
Sources within NNPC Ltd familiar with the development said the initiative is part of broader efforts to ensure steady crude supply to domestic refiners, particularly the Dangote Refinery, which has emerged as a key player in Nigeria’s downstream sector.
According to the sources, the national oil company views the refinery as a critical national asset whose efficient operation is essential to Nigeria’s energy security.
“NNPC Limited recognises that the Dangote Refinery is a strategic national asset, and ensuring its optimal operation is important for Nigeria’s energy security,” the source said.
They explained that within the framework of existing agreements, NNPC continues to facilitate crude supply to the refinery despite temporary supply constraints.
“To address the situation, we are engaging our joint venture partners and production operators to improve domestic crude production, which will increase the volumes available for local refining,” the source added.
The company’s strategy, they said, is designed to strengthen domestic refining capacity while ensuring Nigeria maximises value from its crude resources.
NNPC officials also acknowledged the potential impact of global oil price volatility on the domestic market, particularly amid rising geopolitical tensions in the Middle East.
According to the sources, the national oil firm is closely monitoring developments and working with key regulators, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), to ensure adequate crude supply and product availability.
“We are also working closely with domestic refiners, including the Dangote Refinery, to ensure consistent crude supply for local refining,” the source said.
They added that NNPC is accelerating its gas development initiatives as part of efforts to diversify Nigeria’s energy mix and reduce the country’s exposure to global oil price shocks.
“Our focus remains clear: to safeguard national energy security and ensure Nigerians continue to have access to petroleum products despite global market disruptions,” the source noted.
