Business
Nigeria Exports 55.39m Barrels as Dangote Battles Crude Shortage
Nigeria exported 55.39 million barrels of crude oil in the first two months of 2026, even as the Dangote Petroleum Refinery continues to struggle with inadequate domestic feedstock supply.
According to the latest data from the Central Bank of Nigeria, the country shipped out 31.31 million barrels in January and 24.08 million barrels in February. In January, crude production averaged 1.46 million barrels per day with exports at 1.01 mbpd. In February, production fell to 1.31 mbpd while exports averaged 0.86 mbpd.
Total crude production for the two months stood at 81.94 million barrels, meaning that 26.55 million barrels were left behind for local refineries in the first two months of 2026.
The strong export figures come at a time when the 650,000-barrel-per-day Dangote refinery is battling an acute shortage of local crude. The refinery has repeatedly complained of receiving far below its required volumes from domestic sources, forcing it to import crude from international markets.
This situation persists despite Nigeria’s position as Africa’s largest crude oil producer. Industry sources note that a significant portion of produced crude continues to be exported while the country’s flagship refinery grapples with supply constraints under the naira-for-crude arrangement.
Before the Nigerian National Petroleum Company Limited recently increased crude supply to the Dangote refinery from five cargoes to 10 cargoes, The PUNCH reports that the ambitious deal between the Dangote refinery and the NNPC faced challenges, as the refinery experienced a crude oil supply shortfall of approximately 79.53 million barrels between October 2025 and mid-March 2026.
Data obtained from an impeccable senior management source within the refinery indicated that the facility, which requires approximately 19.77 million barrels of crude monthly to operate at full capacity, received significantly lower volumes during the period.
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The official argued that, under the Petroleum Industries Act, the export of crude before meeting local demand was clearly prohibited, stressing that the $20bn Lekki-based plant had been grappling with inadequate crude volumes, while the country, through NNPC, continued to export some of its oil.
A breakdown of the figures shows that the refinery is supposed to get about 19.77 million barrels of crude monthly, but it got 4.55 million barrels in October, 6.45 million barrels in November, 4.30 million barrels in December, 5.65 million barrels in January, and 4.66 million barrels in February. For March, only 3.6 million barrels were delivered between the 1st and 15th.
In total, crude supplied within the five-and-a-half-month period stood at 29.21 million barrels, compared to an estimated 108.74 million barrels required for the same duration. This translates to a supply performance of about 26.9 per cent, indicating that more than three-quarters of the refinery’s crude needs were not met.
Earlier, the Dangote refinery had repeatedly lamented that it was not getting enough crude locally for its operations.
As the Iran-US war continues to disrupt global oil supply, the Dangote refinery effected multiple fuel price increases, raising the petrol pump price above N1,300 per litre before it was later reduced to the current N1,250 per litre.
Defending these price hikes, the Dangote refinery said in a statement that local crude producers were refusing to supply feedstock to its facility, forcing it to rely more on imported crude.
According to the company, the refinery received just five cargoes every month from the national oil company instead of 13 cargoes, adding that the cargoes were paid for at international market prices.
“While we receive about five cargoes a month from NNPC, which we pay for in naira, these cargoes are priced at international market prices plus premium and fall short of the 13 cargoes which we require to support sales into Nigeria.
“The high crude cost is compounded by the fact that Nigeria’s upstream producers have failed to supply crude oil to the refinery as required under the Petroleum Industry Act, forcing us to source a substantial portion through international traders who charge an additional premium,” it stated.
However, reliable sources at the NNPC, who pleaded anonymity due to the sensitivity of the matter, confirmed to our correspondent that the company was leveraging its global crude trading network to source third-party crude for the 650,000-barrel Lekki refinery.
According to the source, the NNPC would sell the crude to the refinery at prices that are competitive with prevailing international market rates, ruling out calls by some stakeholders that the Federal Government should sell feedstock to local refineries at rates designed locally to shield Nigeria from the global price rise.
“Leveraging our global crude trading network, we are sourcing third-party crude for the refinery at prices that are competitive with prevailing international market rates.
“As the national oil company entrusted with safeguarding Nigeria’s energy security, NNPC Limited remains fully committed to supporting domestic refining, including the Dangote Petroleum Refinery. Within the framework of our existing agreements, we continue to facilitate crude supply to the refinery in the face of temporary availability constraints,” he explained.
Our correspondent gathered from other sources within the national oil company that there was truly a shortfall because some volume of NNPC’s daily crude output had been front-sold in the past.
“Indeed, there’s a shortfall, but it wasn’t deliberate. You know that some volumes have been front-sold in the past. That is causing some form of distortion, but that doesn’t mean the NNPC will not meet up. The company is looking at other alternative sources,” it was said.
Recently, Africa’s richest man and President of the Dangote Group, Aliko Dangote, revealed in a report by Bloomberg that the refinery received 10 cargoes of crude oil from the state-owned oil firm in March, compared to an average of about five cargoes monthly since late 2024.
Dangote said the shipments included six cargoes paid for in naira and four in dollars, under the crude supply arrangement between the refinery and the NNPC. However, this is still below the over 19 million barrels required by the refinery monthly.
The Publicity Secretary of the Crude Oil Refiners Association of Nigeria, Eche Idoko, called for increased crude supply to local refineries.
Idoko declared that refiners would intensify demand for more crude with the reported improvement in national production. The CORAN spokesman explained that consistent crude supply would improve refinery operations and profitability, noting that modular refineries would not make profits unless they get enough feedstock locally.
“If we get crude, of course, we will make gains; we have our cash flow. If we get regular products like we ought to do, yes, we would make gains. But without products, we are not making gains. If the oil producers give us feedstock, we will make gains. That’s how good the refining business is,” he said.
The Punch
Africa’s first fully integrated 2-inch to 48-inch steel pipe induction bending and coating plant is poised to open in Nigeria before end of 2027.
The project completion timeline was disclosed by the Managing Director of Brentex Petroleum Services Limited, Chidi Nzerem, during a tour of the Steel Pipe Induction Bending and Coating Facility at the Federal Ocean Terminal (FOT), Onne Port, Rivers State by the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Felix Ogbe.
Ogbe lauded the firm on the significant progress recorded on the project, describing it as a landmark industrial project and a major demonstration of Nigeria’s growing status as a leading hub for oil and gas logistics, engineering, and manufacturing services.
The Brentex Facility is a $50 million investment being developed to provide integrated steel pipe induction bending, heat treatment, testing, and coating services for Nigeria’s oil and gas industry and has attracted over $26 million in investments to date.
Ogbe, reaffirmed the Board’s commitment to working with industry stakeholders to deepen in-country capacity, promote industrialisation, and expand the scope of Nigerian Content in the oil and gas industry.
He praised Brentex Petroleum Services Limited for its bold investment, resilience, and commitment to developing indigenous capacity, noting that the company’s steady progress on the facility reflected the growing confidence of Nigerian firms in delivering world-class oil and gas infrastructure and engineering solutions.
The Executive Secretary, represented by the Director, Monitoring and Evaluation Directorate (MED), Esueme Dan Kikile, noted that the emergence of the Brentex Steel Pipe Induction Bending and Coating Facility represents “a direct and tangible response to the quest for in-country capacity in specialised pipeline engineering services,” adding that the project would advance “our collective goal of retaining value, creating jobs, and strengthening Nigeria’s position as a leading energy services hub in Africa.”
In a recollection of the beginnings of the company and the project, he disclosed, “We’ve been on this journey with Brentex for over a decade. Today, we’ve seen what you are doing on ground. And that’s actually the whole idea about the equipment component manufacturing initiative of the NCDMB – in-country value addition – and you have been steadfast.”
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The NCDMB boss urged the Management of Brentex to sustain the momentum on the project and maintain the highest standards of quality, safety, and operational excellence, noting that the facility has the potential to become a flagship Nigerian Content asset and a reference point for specialised pipeline engineering services across Africa.
“I’d like to express the Board’s deep appreciation for your investment in our country, and to assure you that you have our support,” he declared, adding, “Whatever we can also do to get the industry to patronise this investment, we’ll do that, because it’s very important that the industry take advantage of what we have in-country.”
In his opening remarks, Nzerem thanked the Executive Secretary and the NCDMB delegation for the visit, describing it as a strong vote of confidence in the project and its contribution to the growth of in-country capacity.
He also acknowledged the Board’s support and partnership over the past 10 years, noting that the sustained interventions had been instrumental to the facility’s progress, adding that it was conceived to advance the objectives of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010.
Nzerem expressed high hopes that the Board’s support would be sustained.
Responding to an inquiry by the General Manager, Downstream, Project Certification and Authorisation Division (PCAD), Tassalla Tersurgh, on the facility’s contribution to human capital development, the Managing Director said the company would engage NCDMB after facility certification to develop training programmes aligned with the Board’s mandate.
He disclosed that the facility is expected to engage about 200 engineers and other technical personnel, creating employment, technical training, skills transfer and capacity-building opportunities, with the long-term goal of the facility being 100 percent handled and operated by trained Nigerians.
On the strategic importance of the facility, the Project Manager at Brentex, Patrick Anaje, stated that the facility, the first of its kind in sub-Saharan Africa, is expected to transform pipeline engineering services by providing the country’s first fully integrated in-country solution for steel pipe induction bending and coating.
He disclosed that Brentex is currently engaged in the Ajaokuta-Kaduna-Kano (AKK) Natural Gas Pipeline project, where the company’s new capabilities would be of immense value.
He noted that with an estimated 95 percent of steel pipes currently imported, the facility will enable operators to source specialised pipe induction bending, coating and pipe repair services locally, significantly reducing dependence on foreign suppliers and overseas repairs, shortening project delivery timelines, lowering procurement-related delays and costs, and improving operational efficiency across the oil and gas industry. He added that the project will also deliver significant benefits to the national economy by retaining industry value within Nigeria.
The ceremony was attended by top management officials of NCDMB, executives of Brentex Petroleum Services Limited, industry stakeholders, project consultants, contractors, representatives of the host communities of Onne and Ogu, members of the Community Liaison Committee (CLC), and members of the media, who witnessed firsthand the significant progress recorded on the strategic Nigerian Content project.
As part of efforts to strengthen the regional distribution network of its 700,000-barrel-per-day refinery and strengthen presence in Africa, the Dangote Group is considering a petroleum products storage terminal in Cameroon.
To this end, the Dangote Group, through its Vice President for Oil, Gas and Fertiliser, Devakumar Edwin, on Tuesday, tabled a proposal before Cameroon’s Prime Minister, Joseph Dion Ngute.
From details of the proposal vented by a local media outlet, Business in Cameroon, the planned facility would help build Cameroon’s strategic petroleum reserves, improve fuel supply security and potentially include a pipeline network for transporting refined products, which would reduce logistics costs and the environmental impact associated with road haulage.
However, the project is still at its preliminary stages as no agreement has been announced by the parties.
The Dangote Group has yet to disclose the proposed location of the terminal, its storage capacity, investment value or implementation timeline.
It has also not stated whether the facility would be wholly owned, developed in partnership with the Cameroonian government or executed under a public-private partnership arrangement.
If realised, the project would provide a major export outlet for petroleum products from the Dangote refinery in Lekki, Lagos, which was built to meet domestic demand while supplying regional markets across Africa.
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According to reports, the proposed terminal would also position the company to serve not only the Cameroonian market but also landlocked Central African countries, including Chad and the Central African Republic, which rely heavily on Cameroonian ports for fuel imports.
By positioning petroleum inventories closer to end-users, the company is expected to reduce delivery times, lower distribution costs and improve the efficiency of fuel supply across the region.
For Cameroon, the investment could strengthen fuel supply security and diversify petroleum product sources, provided the project aligns with the country’s pricing framework, taxation policies and strategic reserve requirements.
It was learnt that the proposal comes as Cameroon intensifies efforts to expand its petroleum storage capacity through major infrastructure projects in the port city of Kribi.
The country’s National Petroleum Storage Company is currently developing a petroleum terminal with a planned storage capacity of 230,000 cubic metres for refined products, including petrol, diesel and kerosene, alongside facilities capable of storing 40,000 metric tonnes of liquefied petroleum gas.
The project is expected to almost double Cameroon’s existing liquid fuel storage capacity of about 245,500 cubic metres.
A second terminal is also being developed by CSTAR Tank Farm Project Management, a consortium owned by Ariana Energy, Tradex and Cameroon’s National Hydrocarbons Corporation.
The CSTAR project is expected to provide between 250,000 and 300,000 cubic metres of storage for diesel, petrol, aviation fuel, kerosene and heavy fuel oil at an estimated cost of CFA168bn.
Combined, the two projects are projected to add at least 480,000 cubic metres of liquid fuel storage capacity to the country’s downstream petroleum sector.
It was said that Dangote’s proposed facility could either complement the government’s ongoing investments or compete with them for access to port infrastructure, financing, pipeline networks and petroleum product volumes.
Cameroon’s petroleum storage business is currently dominated by the National Petroleum Storage Company, which manages the country’s fuel storage facilities, nationwide distribution network and strategic petroleum reserves.
If approved, the Dangote project would mark the group’s entry into Cameroon’s downstream petroleum sector, adding to its existing presence in the country through its cement manufacturing operations in Douala.
The proposal is the latest indication of the group’s ambition to establish a broader regional fuel distribution network anchored on its Lekki refinery, which has increasingly expanded exports to African and international markets.
Forty-five young Nigerian graduates have started a 12-month Nigerian Content Human Capital Development (NC-HCD) Training Programme for technical competencies identified as critical for value retention and increased indigenous participation across the oil and gas industry value chain.
Organised by the Nigerian Content Development and Monitoring Board (NCDMB), in partnership with Chevron Nigeria Limited and Tombas Resources Nigeria Limited, the programme is geared towards provision of Automated Crude Oil Storage Tanks Upgrade and Repair Services, and is designed to have the trainees adequately grounded in process control technologies, industrial instrumentation and maintenance practices, as well as automation systems, among other competencies.
In a keynote address at the occasion, the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, represented by the General Manager, HCD, Alexis Emelle, described the programme as a strategic investment in Nigerian talent and a demonstration of the Board’s commitment to building indigenous capacity in line with its mandate.
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He noted that beyond technical skills, the programme would inculcate professionalism, accountability, teamwork, and a strong culture of safety in the trainees, who are expected to maximise the opportunity and emerge as competent professionals capable of contributing to growth and sustainability of Nigeria’s oil and gas industry.
He admonished the trainees to demonstrate commitment, discipline, and a willingness to learn throughout the programme, pointing out that their selection was a reflection of the confidence that the NCDMB, Chevron Nigeria Limited, and Tombas Resources, along with the training partners, have in their potential.
In separate remarks, representatives of Chevron and Tombas congratulated the trainees on their successful selection, while urging them to take their training seriously and be focused and dedicated throughout the duration of the programme.
In an overview of the training scope, a representative of Dexterous Applied Training Institute explained that participants would be exposed to Basic Offshore Safety Induction and Emergency Training (BOSIET), Health Safety and Environment (HSE), Introduction to Electrical and Industrial Instrumentation Maintenance, and Introduction to Oil and Gas Operations, in addition to the aforesaid competencies, for which they would receive globally recognised industry certifications. The NC-HCD training programme constitutes part of NCDMB’s broader human capital development strategy aimed at creating a new generation of highly skilled Nigerians capable of supporting the growth, competitiveness and sustainability of Nigeria’s oil and gas industry
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