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
The Nigerian Content Development and Monitoring Board has honoured 14 of its retired employees for their contributions to the growth and development of local content in Nigeria’s oil and gas industry.
The retirees were honoured at a celebration dinner held on Sunday at the Conference Centre of the Nigerian Content Tower, Yenagoa, Bayelsa State.
The event also provided an opportunity for former management staff of the board to reflect on the challenges surrounding the implementation of the Nigerian Oil and Gas Industry Content Development Act, 2010, and the progress recorded since its enactment.
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Speaking at the ceremony, a former Director of Legal Services, Mohammed Umar, said the implementation of the Act was initially met with resistance from major players in the oil and gas industry.
Umar said the board had to deploy tact and sustained engagement to convince industry operators of the benefits of complying with the local content law.
“Local content was new in the oil and gas sector. Companies were hardly cooperative, and tact was required to create understanding and compliance with the provisions of the Act,” he said.
He noted that local content had grown from about five per cent in 2010 to 61 per cent, describing the development as a major achievement.
“Local content has come to stay. Many other African countries now come to Nigeria to learn the secret of the country’s success,” Umar stated.
He urged serving employees of the board to remain committed and give their best to sustain the progress recorded in local content development.
Another retiree, Daziba Obah, who served as pioneer Director of Planning, Research and Statistics and later as Acting Executive Secretary of NCDMB, recalled the challenges encountered during the construction of the 17-storey Nigerian Content Tower.
Obah also spoke about the early challenges of funding research and development projects, noting that the board eventually demonstrated its capacity by successfully organising its maiden Research and Development Fair and Conference in Lagos in 2017.
Similarly, a former Director of Planning, Research and Statistics, Isaac Yalah, described NCDMB as an institution that provides staff with the tools and training required to excel.
He said the $350m Nigerian Content Intervention Fund had significantly boosted the participation of indigenous companies in the oil and gas sector.
“The Nigerian Content Intervention Fund was a game changer with regard to indigenous participation in the oil and gas industry,” Yalah said.
He added that several Nigerian service companies accessed the fund at single-digit interest rates to acquire assets and expand their operations.
Yalah urged serving staff to continue learning and remain focused on taking the board to greater heights.
Also speaking, former General Manager, Corporate Communications and Zonal Coordination, Dr Ginah Ginah, described his years at NCDMB as “very exciting times.”
Ginah said the board’s training programmes contributed significantly to staff development, while its establishment of Information and Communication Technology centres helped promote digital awareness among young people in oil-producing communities.
Representing the Executive Secretary of NCDMB, Felix Ogbe, the Director of Monitoring and Evaluation, Esueme Kikile, said the event was organised to honour men and women who had dedicated significant portions of their professional lives to the service of the board.
Kikile said the retirees contributed not only through their official responsibilities but also by mentoring colleagues, sharing knowledge and building institutional relationships.
He said, “Their contributions extended beyond the duties associated with their respective positions, as they shared knowledge, built relationships, mentored colleagues and contributed to the institutional experience that continues to shape the Board today.”
Kikile, on behalf of the management and staff of NCDMB, wished the retirees good health, peace, happiness and fulfilment in their retirement.
The ceremony also featured testimonials from serving staff who had worked closely with the retirees, including former technical assistants.
The speakers recalled the mentorship, professional guidance and support they received from the retirees during their years of service.
The event ended with a dance session by the retirees and a cultural performance, providing an opportunity for former and serving staff to interact in a relaxed atmosphere.
Other retirees honoured included Dr Ama Ikuru, Adelana Akintunde, Dr Obinna Ofili, Angela Okoro, Taridouye Gagariga, Ombu Atonbara, Okpetu Gabriel and Peter Isu Odo.
Courtesy – The PUNCH
Nigeria’s public debt has climbed to ₦166.79 trillion as of June 30, 2026, with financial analyst and Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, warning that the country’s debt burden is approaching the 40 per cent of Gross Domestic Product (GDP) limit.
Rewane raised concerns over the increasing debt burden, stressing that the key issue is not simply the amount Nigeria owes but what the borrowed funds have been used to achieve.
“There is a fiscal responsibility that says we shouldn’t exceed 40% of GDP, ₦166 trillion is the limit,” Rewane said.
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“The question is not how much the debt is, it is what have you used the debt to acquire? We haven’t seen any corresponding increase in productivity yet and there is a cost of living and affordability crisis.”
He also warned that Nigeria’s debt per capita was already high and could not continue rising indefinitely.
“Nigeria’s debt per head is very high and cannot increase further,” he added.
The comments come as the latest figures from the Debt Management Office (DMO), as reported by Business A.M, showed that Nigeria’s public debt increased by ₦79.41 trillion in three years, rising from ₦87.38 trillion in June 2023 to ₦166.79 trillion by June 2026.
The latest figure represents a 90.9 per cent increase in the country’s public debt stock since June 2023.
On a year-on-year basis, public debt increased by ₦14.39 trillion, or 9.4 per cent, from ₦152.40 trillion in June 2025. It also rose by ₦7.44 trillion, or 4.7 per cent, from ₦159.35 trillion recorded in March 2026.
According to the report, domestic debt stood at ₦91.59 trillion, representing 54.91 per cent of total public debt, while external debt amounted to ₦75.20 trillion, or 45.09 per cent.
The Federal Government accounted for ₦152.77 trillion, representing about 91.6 per cent of the total public debt, while states and the Federal Capital Territory accounted for the remaining ₦14.01 trillion.
The rising debt stock has also been accompanied by increasing debt-servicing costs.
Federal Government domestic debt service rose to ₦3.14 trillion in the first quarter of 2026, compared with ₦2.61 trillion in the corresponding period of 2025.
Interest payments accounted for most of the increase, rising by 25.4 per cent to ₦2.97 trillion during the period.
Rewane’s comments therefore place renewed focus on the economic returns from government borrowing, particularly whether borrowed funds are translating into higher productivity, stronger revenues and expanded productive capacity.
The concern has also been raised by other Nigerian economists and financial analysts, who have argued that borrowing should be linked to projects capable of generating economic returns and strengthening the government’s capacity to repay its obligations.
Kenyan President, William Samoei Ruto has described the Dangote Petroleum Refinery and Petrochemicals (DPRP) as “a masterpiece of science, engineering and art”.
He made the declaration following a tour of the world-class facility in Lagos, while reaffirming Kenya’s commitment to partnering with the Dangote Group on the proposed $17 billion East African Oil Refinery and Petrochemical Complex in Lamu.
President Ruto visited the refinery after attending the United Nations General Assembly (UNGA), noted that witnessing firsthand the scale, sophistication and operational excellence of the 700,000 barrels-per-day Dangote Refinery had strengthened his confidence in the East African refinery project.
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“Coming here and seeing it for myself, I can confirm that I have seen a masterpiece of science, engineering, and art. To my brother Aliko, congratulations. I always knew Nigerians to be very brave people and go-getters, but I did not anticipate that it was at this scale,” President Ruto said.
The Kenyan leader disclosed that preparations had been concluded for the ground-breaking ceremony of the East African refinery project in Lamu, which is expected to become a strategic regional asset for East Africa.
According to him, the refinery will drive industrialisation, create jobs, strengthen engineering and technical capacity, enhance energy security and promote regional economic integration.
“This is not a Kenyan refinery; it is going to be a regional refinery. We are positioning our continent as an emerging growth centre, and this project will help accelerate industrialisation, create jobs, enhance engineering capabilities and strengthen Africa’s economic competitiveness,” he stated bureaucratic bottlenecks to ensure efficient project execution.
“The Government of Kenya is 100 percent behind this project. We have secured the required land and are working to ensure that we spend our time building rather than navigating administrative delays,” he said.
The President further commended the leadership and commitment of Dangote Group President and Chief Executive, Aliko Dangote, highlighting his deep understanding of the refinery’s technical and operational processes.
“The detail with which Aliko Dangote understands this plant is remarkable. Unless you understand the details, you are unable to make the right decisions. That commitment to excellence is one of the reasons behind the success of this project,” he added.
Dangote Group’s Chief Strategy Officer, Aliyu Suleiman, disclosed, during the visit that the conglomerate generated approximately $17 billion in revenue during the first half of 2026 and is on course to achieve a record $36 billion in revenue for the full year, representing a 100 per cent increase over the $18 billion recorded in 2025.
“The revenues of the Group have grown significantly over the last five years. From $18 billion last year, we are on track to get to $36 billion this year. Our half-year revenue is already about $17 billion,” Suleiman said.
He attributed the strong performance to sustained investments across key sectors, including cement, sugar, fertiliser, petroleum refining, upstream oil and gas, and other strategic businesses.
Suleiman noted that Dangote Group’s growth ambitions are anchored on its Vision 2030 Strategy, aimed at expanding the company’s industrial footprint across Africa and creating globally competitive businesses on the continent.
“Between 2020 and 2025, the Group executed a capital expenditure programme of approximately $50 billion. Over the next five years, we intend to invest twice that amount as we accelerate our expansion across Africa,” he stated.
Suleiman emphasised that the proposed 700,000 barrels-per-day greenfield refinery and petrochemical complex in Lamu, estimated at approximately $17 billion, will be a cornerstone of the Group’s ambition to build a $100 billion African industrial enterprise.
“The East African refinery in Kenya is going to be a key component of our journey and our dream to get to $100 billion. It is going to be a major contributor,” he said.
He added that Dangote Group’s expansion plans span a broad range of sectors, including port infrastructure, gas infrastructure, LNG, upstream oil and gas, power generation, mining and other strategic industrial investments across Africa.
As part of preparations for the project, Dangote Group has signed a contract worth more than $450 million with Engineers India Limited (EIL) to provide project management consultancy and engineering, procurement and construction management services for the Lamu refinery and petrochemical complex.
The partnership builds on EIL’s experience and involvement in the successful development of the DPRP in Lagos. Once completed, the East African refinery is expected to process 700,000 barrels of crude oil per day, strengthening regional energy security and supporting industrial development across East Africa.
The Dangote Group is also progressing plans to expand the processing capacity of the DPRP in Nigeria from 700,000 barrels per day to approximately 1.4 million barrels per day through the addition of a new 750,000 barrels-per-day crude distillation unit.
The expansion is expected to further solidify Nigeria’s position as a leading exporter of refined petroleum products and enhance Africa’s energy self-sufficiency.
President Ruto’s visit and Dangote Group’s ambitious growth plans highlight the increasing impact of African-led investments in driving the continent’s industrial renaissance.
With record revenue growth, a robust investment pipeline, expansion of refining capacity in Nigeria and the planned development of the East African Oil Refinery in Kenya, Dangote Group is reinforcing its role as a key driver of Africa’s economic transformation, energy security, industrial development and regional integration.
Photo Caption: From Left – Kenya President, Dr. William Samoel Ruto; Group Vice President, Oil & Gas and Fertiliser, Dangote Industries Limited, Devakumar Edwin; and President/CE, Dangote Industries Limited, Aliko Dangote during the Kenya President’s Visit to Dangote Petroleum Refinery, Petrochemicals and Fertiliser Plant Lekki, Lagos on Friday 25th September 2026.
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