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.
ALSO READ: NGX Expands Trading Window from 9:00am to 4:00pm
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 non-governmental organisations (NGOs) now have extra motivation to offer exceptional impact, accountability and governance as long-term funding beckons.
This is because the NNPC Limited/FIRST Exploration and Petroleum Development Company Limited Joint Venture has launched ‘Impact FIRST: Heritage’, a new multi-year grant programme designed to provide sustained funding and long-term partnership support to outstanding NGOs.
Biztellers reports that the inaugural Impact FIRST: Heritage Grant Presentation Ceremony was held recently in Ikoyi, Lagos, had representatives of the NNPC Limited/FIRST E&P JV, beneficiary organisations, development stakeholders and members of the media in attendance to mark a new chapter in the JV’s commitment to sustainable social investment.
READ ALSO: With Sights Restored, NNPC/Shell Vision First Outreach Makes Mark in Badagry
Impact FIRST: Heritage builds on the success of the flagship Impact FIRST grant programme, which was launched in 2024 to support innovative and impactful NGOs addressing critical social challenges across Nigeria. Since inception, the programme has provided support to 15 NGOs whose interventions have positively impacted more than 20,000 beneficiaries across the country.
Unlike the annual Impact FIRST grant programme, which provides one-off funding support to a broad pool of eligible organisations, Impact FIRST: Heritage is designed as a long-term partnership model.
The programme provides multi-year funding to previous Impact FIRST beneficiaries that have demonstrated strong institutional governance, measurable social impact, sustainable programme delivery and the capacity to scale their interventions responsibly.
Following a rigorous assessment process, five organisations were selected as the inaugural beneficiaries of the Impact FIRST: Heritage programme, including The IREDE Foundation, which provides prosthetic limbs and support services for child amputees; Asido Foundation, which supports the rehabilitation and reintegration of individuals living with severe mental health conditions; Cerebral Palsy Centre, which provides long-term care and support services for persons living with cerebral palsy; Health and Development Support Programme, which delivers eye care interventions and sight-restoring surgeries for underserved populations; and Health Emergency Initiative, which expands access to emergency healthcare services and supports first-responder capacity development.
Speaking at the ceremony, Executive Director, Corporate Services, FIRST E&P, Emmanuel Etomi, described Impact FIRST: Heritage as an important evolution of the Joint Venture’s social investment journey.
“Today, we celebrate five exceptional organisations whose work continues to improve lives, strengthen communities, and create opportunities for some of Nigeria’s most vulnerable and underserved populations.
“By providing long-term support to organisations that have already demonstrated strong performance and measurable results, we are helping them scale their impact, strengthen their capacity, and create even greater value for the communities they serve,” he said.
In his address, the Chief Upstream Investment Officer, NNPC Upstream Investment Management Services, Olanrewaju Igandan, who was represented by Usman Mohammed-Bello, Advisor, Community Relations, NUIMS, at the event, said the transition from an annual corporate giving programme to a multi-year grant framework reflects a mature, strategic approach to social investment that aligns with the imperatives of sustainable development.
While appreciating FIRST E&P for what he termed a “forward-looking initiative”, he further pledged NUIMS’ commitment to sustaining the collaborative journey towards impactful social value creation that aligns with national development priorities.
Responding on behalf of the beneficiary organisations, Pascal Achunine, Executive Director of the Health Emergency Initiative (HEI), expressed appreciation to the NNPC Limited/FIRST E&P JV for the support and confidence reposed in the selected organisations.
He remarked that, “this investment represents more than funding. It is a vote of confidence in the work being done by organisations across the social sector to improve lives and strengthen communities. We are grateful for the opportunity to deepen our impact and extend our reach to even more beneficiaries.”
Impact FIRST: Heritage underscores the NNPC Limited/FIRST E&P JV’s commitment to creating sustainable social value through strategic partnerships with organisations that have demonstrated the ability to deliver measurable and lasting change.
Through the programme, the JV aims to strengthen proven interventions, expand access to critical services, and support long-term development outcomes across healthcare, education, economic empowerment and community development.
Stakeholders in the oil and gas sector have welcomed the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) projection that Nigeria’s upstream oil and gas sector is to attract between $30 billion and $50 billion in offshore investments between 2026 and 2030.
According to the Commission, the investment pipeline will be driven by 22 major offshore projects expected to boost crude oil production, create jobs, expand energy infrastructure, and strengthen the country’s energy security.
They believe that achieving these milestones will require peace and stability in the Niger Delta and protection of national assets, especially oil pipelines through Tantita Security Services Nigeria Ltd (TSSNL) operations.
Nigeria is determined to achieve $30 billion and $50 billion in offshore investments between 2026 and 2030 is real, according to the (NUPRC).
ALSO READ: Tinubu Approves New Deep Offshore Policy to Unlock $50bn Investment
The NUPRC attributed the improved outlook to reforms introduced under the Petroleum Industry Act (PIA), improved licensing transparency, and faster project approvals.
Since 2024, the regulator has approved more than $57 billion in Field Development Plans (FDP), with several projects already progressing to Final Investment Decisions (FID).
The Commission also said preparations for the 2026 Licensing Round are underway as it seeks to attract further investment into Nigeria’s upstream sector. The planned projects are expected to support the government’s target of increasing crude oil production to 2 million barrels per day by 2027 and 3 million barrels per day by 2030.
Gaining the oil sector backing in this milestone journey requires more than policy pronouncements from the NUPRC.
It requires investment drive, attractiveness to global energy markets and support of domestic players in the industry.
President General, Niger Delta Progressive Alliance, Nse Victor Udoh, said to effectively harness the oil revenue requires that the Niger Delta, a region severally described as the goose that lays the golden eggs, must also be at peace and oil infrastructure across the region well secured.
He explained that it is where the Federal Government of Nigeria’s appointment of the TSSNL to protect oil assets and ensure peace and stability in the Niger Delta comes to play.
He added that the singular act will contribute positively to achieving $30 billion and $50 billion in offshore investments between 2026 and 2030, as predicted by the NUPRC.
The desire for a transparent investment framework offering hopes of unlocking up to $50 billion in deep offshore investment and restarting Nigeria’s large, capital-intensive offshore developments that have been stalled for long has seen President Bola Ahmed Tinubu sanction a landmark reform that replaces project-by-project negotiations.
According to a statement issued by presidential spokesperson, Bayo Onanuga, the reform establishes a transparent, rules-based investment framework capable of supporting the next generation of deep offshore developments, beginning with the approximately $10 billion Bonga South West project, while strengthening Nigeria’s competitiveness for globally mobile investment capital.
The decision, the statement said, builds on Tinubu’s engagement with the Chief Executive Officer of Shell PLC, Wael Sawan, during which the President directed the development of the next wave of measures required to unlock Nigeria’s deep offshore investment pipeline.
Rather than pursuing project-specific solutions, the federal government transformed that directive into a comprehensive investment framework applicable across multiple categories of qualifying developments, it said.
READ ALSO: NMDPRA Moots 5% Turnover Penalty to Discourage Oil Industry Infractions
Given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, the framework replaces project-by-project negotiations with transparent eligibility criteria, clear implementation processes and a durable investment architecture that provides greater certainty for investors while safeguarding long-term national value.
The approval also enables the Nigerian National Petroleum Company Limited (NNPC Ltd), as the government’s nominated counterparty under the Production Sharing Contracts (PSCs) to proceed with the necessary amendments to eligible PSCs required to implement the framework.
Tinubu commended the Federal Ministry of Justice, the Federal Ministry of Finance, the Federal Ministry of Petroleum Resources, the Nigeria Revenue Service (NRS), the NNPC Limited, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Content Development and Monitoring Board (NCDMB), investing partners and other industry stakeholders whose collaboration, technical expertise and commitment helped shape the framework.
Tinubu said: “The countries that attract long-term investment are not necessarily those with the greatest natural resources. They are the ones that provide the greatest certainty. This reform reflects our determination to build an investment environment defined by clear rules, strong institutions and enduring partnerships.
“We are creating the conditions for capital to flow, for Nigerian businesses to grow, for our people to prosper and for our natural resources to deliver lasting national value.”
UAE Oil Giant Says Vessel Attacked in Hormuz Strait
NGOs Get Long-term Backing from NNPC Ltd, FIRST E&P
Arsenal Thrash Man City 3-0 in Community Shield Masterclass
Kogi Man Allegedly Sets Wife Ablaze After She Burnt His Clothes
2027: Kebbi Gov Drops Deputy, Picks New Running Mate
With Sights Restored, NNPC/Shell Vision First Outreach Makes Mark in Badagry
Trump’s Family Unveils New Cryptocurrency Platform
Senate Denies Receiving Petitions Against Tinubu’s Ambassadorial Nominees
Dangote Cement Lights Up Benue Host Communities With CSR Initiatives
Reps Recommend 3-year Jail Term For Aviation minister
Tems Sets New Record On Billboard Hot 100 Chart
