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Dangote imported 1.46bn litres blended gasoline – NMDPRA

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority has revealed a growing reliance by Dangote Petroleum Refinery on imported gasoline blendstock, mainly to boost its refined fuel production, The PUNCH reports.

Latest industry data obtained from the NMDPRA’s Midstream and Downstream Petroleum Statistics for May 2026 and analysed by our correspondent on Sunday showed that the 650,000 barrels-per-day refinery imported about 1.46 billion litres of intermediates and gasoline blendstock between January and May this year, despite receiving volumes of domestic and imported crude oil.

The industry report showed that the refinery continued to supplement crude oil processing with imported intermediates, helping it sustain daily petrol production of 44.7 million litres and achieve an average capacity utilisation of 101.25 per cent in May.

It also indicates that the refinery continued to rely on imported intermediates and gasoline blendstock to optimise production of Premium Motor Spirit despite increased access to crude oil supplies.

The PUNCH reports that gasoline blendstock refers to intermediate petroleum products used in refining operations to produce finished petrol that meets required quality and environmental specifications.

The product, rather than being sold directly to consumers, serves as an intermediate feedstock that is blended with other refinery streams and additives to produce Premium Motor Spirit that meets required quality, octane and environmental specifications.

The blendstocks can be mixed with products generated from crude oil refining to increase petrol output, improve fuel quality and enhance refining flexibility. Common gasoline blendstocks include reformate, alkylate, naphtha and other high-octane blending components.

By introducing gasoline blendstocks into the refining process, a refinery can increase the volume of finished petrol produced without relying solely on crude oil inputs. This can be particularly useful when domestic demand is strong or when refiners seek to maximise returns from specific products.

In the case of Dangote Refinery, the NMDPRA data suggest that imported blendstocks may be helping the facility sustain high petrol output and reach its nameplate capacity of 650,000 barrels per day.

An analysis of the report by our correspondent showed that Dangote Refinery imported 658.31 million litres of gasoline blendstock in January, 306.89 million litres in February, 102.35 million litres in March, 147.37 million litres in April and 240.59 million litres in May.

The cumulative volume imported during the five-month period stood at approximately 1.46 billion litres. The latest data showed that after three consecutive months of decline between January and March, the refinery increased its blendstock intake in April and May, signalling stronger feedstock purchases as production activities expanded.

The May volume of 240.59 million litres represented a 63.3 per cent increase from the 147.37 million litres imported in April. The development comes as the refinery sustained high utilisation rates and continued to dominate Nigeria’s domestic fuel supply market.

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According to the NMDPRA report, the refinery operated at an average capacity utilisation of 101.25 per cent in May, underscoring strong operational performance at the facility.

The report further showed that the refinery produced an average of 44.7 million litres of Premium Motor Spirit per day during the month. Out of the total PMS produced, about 41.5 million litres per day were supplied to the domestic market, while closing stock stood at 9.4 million litres.

The refinery also produced 24.5 million litres of Automotive Gas Oil, commonly known as diesel, daily. Of this volume, 18.2 million litres were supplied locally while 6.5 million litres were exported. For aviation fuel, the refinery recorded daily production of 21.9 million litres. Domestic supply stood at 2.8 million litres per day, while exports reached 17.5 million litres daily.

Further analysis of the NMDPRA data showed that the refinery continued to receive a combination of domestic and imported crude oil feedstock. In May, domestic crude supplied to refineries stood at 15.84 million barrels, while imported crude accounted for 2.08 million barrels, bringing total crude receipts to 17.92 million barrels.

This compares with total crude receipts of 18.37 million barrels in April, made up of 17.96 million barrels of domestic crude and 410,000 barrels of imported crude. The figures suggest that despite improvements in local crude supply, imported feedstocks and intermediates remain an important component of the refinery’s operations.

On a comparison of imported gasoline feedstock and capacity output, the data suggests that Dangote Petroleum Refinery is increasingly deploying imported gasoline blendstock as a strategic feedstock to maximise petrol production and sustain operations at levels close to, and even above, its installed refining capacity.

Total crude receipts increased from 9.53 million barrels in January to a peak of 20.92 million barrels in March before moderating to 17.92 million barrels in May.

In January, when crude receipts stood at 9.53 million barrels, Dangote recorded its highest gasoline blendstock import volume of the year at 658.31 million litres. The high level of imports during the period likely reflected efforts by the refinery to supplement feedstock availability and maintain product output as crude supply arrangements were still being stabilised.

As crude supplies improved in February and March, the refinery’s dependence on imported blendstock declined sharply. Total crude intake rose to 13.11 million barrels in February and further to 20.92 million barrels in March, while gasoline blendstock imports dropped from 306.89 million litres in February to just 102.35 million litres in March, the lowest level recorded during the five-month period.

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The pattern suggested that increased access to crude oil reduced the refinery’s immediate need for imported gasoline components, allowing more products to be generated directly from refining operations.

However, the trend changed again in April and May. Despite maintaining strong crude receipts of 18.37 million barrels in April and 17.92 million barrels in May, the refinery increased its intake of gasoline blendstock from 147.37 million litres in April to 240.59 million litres in May, representing a 63.3 per cent rise within one month.

The increase coincided with some of the refinery’s strongest operational performance indicators since the commencement of production.

According to the NMDPRA report, Dangote Refinery achieved an average capacity utilisation rate of 101.25 per cent in May, surpassing its installed nameplate capacity. The refinery also produced 44.7 million litres of Premium Motor Spirit daily during the month, while supplying 41.5 million litres per day to the domestic market.

With a nameplate processing capacity of 650,000 barrels per day, the refinery would require about 20.15 million barrels of crude to operate at full capacity throughout a 31-day month. However, total crude receipts in May stood at 17.92 million barrels, below that threshold.

Yet, despite receiving less crude than the volume theoretically required for full-capacity operations, the refinery still reported utilisation above 100 per cent, suggesting that imported intermediates and gasoline blendstock played a complementary role in boosting finished product output.

The latest statistics also highlighted the continued absence of contributions from state-owned refineries. According to the report, the Port Harcourt Refining Company, Warri Refining and Petrochemical Company and Kaduna Refining and Petrochemical Company were all classified as being under shutdown status as of May 2026.

Their inactivity leaves Dangote Refinery as the country’s major operational refining hub and the largest supplier of locally refined petroleum products.

The refinery’s growing reliance on gasoline blendstock imports comes amid ongoing efforts by the Federal Government to achieve energy security, reduce dependence on imported refined products, and increase domestic refining capacity.

Since commencing large-scale operations, the Dangote Refinery has significantly altered Nigeria’s fuel supply landscape by reducing petrol imports and increasing local production, although the latest figures indicate that imported intermediates continue to play a strategic role in sustaining output levels.

With PMS production remaining above 44 million litres daily and blendstock imports rising again in May, the refinery appears to be strengthening its feedstock position as it seeks to consolidate its role in supplying Nigeria’s fuel requirements and expanding exports to regional markets.

Commenting, a Professor of Energy at the University of Lagos, Dayo Ayoade, explained that gasoline blendstocks are unfinished petroleum streams imported by refineries to enhance fuel quality, optimise operations and increase output.

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Ayoade, speaking in an interview on Sunday, noted that the importation of blendstocks could help refineries produce higher-quality fuel that complies with modern environmental standards.

He further explained that the strategy also enables refineries to maximise the efficiency of their processing units and sustain production levels.

He said, “Gasoline feedstocks are unfinished petroleum streams such as straight run naphtha, butane, reformate, fluid catalytic gasoline and different types of streams that are basically combined and blended eventually to meet the regulatory standards of Premium motor spirit, which the Petroleum Industry Act alludes to.

“This is actually common practice all over the world; there is no issue. It is not cheating or any problems. Like all refineries in the world, blended gasoline feedstock will allow a refinery to improve the quality of its petroleum products, e.g., Euro V quality fuel that has low sulphur, which is the acceptable type of fuel we need in the market now.”

The energy expert added that the feedstocks provide flexibility for refiners to adjust output in response to market demand.

He added, “It is also used to optimise the operational base of the refinery because they use it to maximise the output of the refinery units like the catalytic crackers or hydrocarbon crackers to ensure that they are producing.

“The refinery also wants the secondary unit to work at full capacity so when they import the kind of blends, it will allow the refinery to continue to work, especially where crude supply is not as stable as you would want it to be.”

However, Ayoade said the key concern should be the economic implications of continued importation, particularly its impact on foreign exchange. He warned that the development could also fuel misconceptions about the refinery’s operations.

“Basically, that feedstock gives the refinery the option of flexibility too. They keep adjusting the mixtures to produce different products which are needed for the domestic and international markets.

“It is not a bad thing. The only issue is what is likely the production impact. There are larger consequences of costs. The refinery is now at capacity, but the importation means we are leaking foreign exchange.

“So money is leaving Nigeria to buy things from international markets and then being exposed to the risks of the international market. The importation also allows detractors or enemies of the refinery to say that the refinery is importing finished PMS, which is not true.”

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Labour knocks govt as FAAC payouts hit N10.4tn

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Nigeria’s three tiers of government received a total of N10.45tn from the Federation Account Allocation Committee (FAAC) between January and May 2026, representing a 25.85 per cent increase from the N8.30tn shared in the corresponding period of 2025, as the Nigeria Labour Congress and private sector stakeholders criticised governments at all levels over worsening living conditions, infrastructure decay and rising insecurity.

An analysis by The PUNCH showed that the allocations to the Federal Government, 36 states, the Federal Capital Territory, and 774 Local Government Areas were distributed from the gross government revenue of N13.76tn realised during the period, up by 4.32 per cent from N13.19tn recorded in the first five months of 2025.

The increase in distributable revenue occurred amid stronger Value Added Tax collections, higher oil-related tax receipts, and an aggressive drive by the Nigeria Revenue Service to achieve its revenue target of approximately N40tn for the federation.

Analysis of FAAC data in 2026 showed that the Federal Government received N3.72tn from the five-month allocation, while state governments got N3.56tn. Local governments received N2.51tn, while the 13 oil-producing states shared N673.17bn as derivation revenue.

A breakdown of monthly allocations showed that the amount shared rose from N1.96tn in January 2026 to N2.30tn in May 2026.

Month-on-month, allocations declined by 3.37 per cent in February to N1.89tn, then rebounded by 7.50 per cent to N2.04tn in March. The distributable pool increased further by 10.85 per cent in April to N2.26tn and rose by another 1.91 per cent in May to N2.30tn.

Compared with the corresponding months of 2025, January 2026 allocation increased by 15.09 per cent from N1.70tn to N1.96tn. February rose by 12.87 per cent from N1.68tn to N1.89tn, while March jumped by 28.86 per cent from N1.58tn to N2.04tn.

April recorded a 34.35 per cent increase from N1.68tn to N2.26tn, while May rose by 38.55 per cent from N1.66tn to N2.30tn, indicating stronger revenue mobilisation as the year progressed.

Gross government revenue also climbed steadily. It stood at N2.59tn in January, declined to N2.23tn in February, before rising to N2.36tn in March, N3.18tn in April, and N3.40tn in May.

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The Federal Government emerged as the largest beneficiary of the five-month allocation with N3.72tn, exceeding the total allocation to local governments by N1.21tn or 48.2 per cent. State governments received N3.56tn, which was N1.05tn or 41.8 per cent higher than the N2.51tn allocated to local councils.

The gap between the Federal Government and states remained relatively narrow, with the Federal Government receiving N160.71bn more than states during the period, representing about 4.5 per cent.

Labour reacts

In a phone interview with The PUNCH, reacting to the development, the Assistant General Secretary of the Nigeria Labour Congress, Chris Onyeka, said the increase in revenue had not translated into improved welfare for Nigerians.

“It is not the quantum of revenue available to the government that translates to impact on the welfare of citizens and workers,” Onyeka said. “It is the willingness of the people who occupy positions of leadership that determines how these resources impact the lives of the citizenry.”

He accused the three tiers of government of failing to channel public resources into projects that improve citizens’ lives.

He lamented the political problem, stating: “The answer is simply that 99 per cent of those in government will not let it impact positively on the lives of Nigerians. Because if they do, our lives will not be the way they are. Infrastructure all over the nation has deteriorated significantly.”

However, some states are performing above board. According to the NLC official, “It is only in one or two states where you see improvement because the people occupying positions of leadership have decided to allow some of the resources to touch the lives of the people.”

The labour leader argued that insecurity remained the biggest indicator of government failure despite rising revenues. “You cannot talk about infrastructure development or the welfare of the citizenry if you cannot address insecurity. If I cannot move from point A to point B without having my heart in my mouth, then you cannot talk about any other thing. The Constitution talks about the security and welfare of citizens. Security is paramount,” Onyeka said.

He added, “If I cannot go to my farm and come back safely, if I plant and cannot return to harvest, then it has multiplier effects on the welfare of the citizenry. Nigerians are scared. As you are saving money, you are also saving money for ransom payments.”

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Onyeka lamented that workers had not benefited from the increased allocations, citing soaring transportation, housing and food costs.

“We do not feel better off. We do not use better roads. We do not pay cheaper transport fares. We do not have better access to health care, education or nutrition. We cannot feed ourselves better. So how do you measure the impact?” he asked.

He further declared, “Nigeria is not working. Nigeria is not working.”

Also commenting, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said some states had used increased revenues to support citizens, but many had failed to prioritise projects that directly improve livelihoods.

“Some states have invested in projects that really impact the lives of the people, such as providing mass transit, supporting farmers with fertiliser and inputs, investing in health care services and developing rural communities,” Yusuf said.

However, he noted that many governments focused on projects with limited impact on living standards. “Many states prefer to embark on physical projects people can see, like express roads, flyovers and airports. Those things are not bad, but their developmental impacts in terms of livelihoods and living standards are very limited,” Yusuf stated.

He warned against a situation where rising government revenues coexist with worsening poverty. “States should focus on things that directly impact livelihoods and welfare so that we do not have a situation where there is prosperity in terms of revenue and fiscal outcomes while so many people are left behind. Inclusion is very critical,” Yusuf said.

The economist also urged state governments to take greater responsibility for security, saying they should continue supporting security agencies rather than leaving the burden solely to the Federal Government.

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New sharing formula

The growth in allocations comes months after the implementation of a new VAT sharing formula under the tax reforms signed into law by President Bola Tinubu. The reforms reduced the Federal Government’s VAT share from 15 per cent to 10 per cent while increasing the states’ share from 50 per cent to 55 per cent.

The PUNCH had earlier reported that states received N1.18tn from VAT revenue in the first quarter of 2026, an increase of N214.78bn or 22.35 per cent compared to the corresponding period of 2025.

The Federal Capital Territory also made history in January 2026 when it received N15.8bn from the VAT pool for the first time despite being a consistent contributor to VAT collections.

However, despite the improvement in allocations, revenue generation has remained below government expectations. The PUNCH previously reported that the Nigeria Revenue Service generated N7.44tn in the first quarter of 2026 against a target of N9.68tn, leaving a shortfall of N2.24tn and achieving a performance rate of 76.87 per cent.

The NRS has since intensified compliance enforcement. Speaking recently at a tax compliance workshop in Abuja, Executive Director of the Government and Large Taxpayer Directorate, Amina Ado, warned that unremitted taxes by ministries, departments, agencies, states and local governments could trigger direct deductions from their FAAC allocations.

Ado said, “Section 80 empowers the Accountant General of the Federation to deduct all unremitted revenues due from any MDA or government from its budgetary allocation and remit such deductions to the relevant tax authority, whether a federal or a state tax authority, after a specific due process has been followed.”

She added, “If a federal, state, or local government treats that withholding tax as someone else’s responsibility, the law provides a mechanism for that neglect to return immediately through deductions from allocations by the Accountant General of the Federation.”

According to her, the agency is targeting about N40tn in tax revenue and sees stronger compliance by public institutions as critical to achieving the goal.

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IMF lists four priorities for Nigeria as Stablecoin use surges

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The International Monetary Fund (IMF) has identified four critical priorities for Nigeria as the country seeks to harness the growing use of dollar-pegged stablecoins for cross-border payments while safeguarding monetary stability and financial integrity.

In a new Country Focus note released as part of Nigeria’s 2026 Article IV consultation, the IMF said stablecoins have emerged as a practical solution to longstanding inefficiencies in remittance and international payment systems, offering faster and cheaper transactions than traditional channels.

The report was authored by IMF Mission Chief for Nigeria, Axel Schimmelpfennig, and Bo Zhao.

The Fund noted that stablecoins have gained significant traction in Nigeria, driven by the need for affordable cross-border transfers, access to dollar-denominated assets, and protection against currency volatility. However, it warned that their rapid adoption also presents risks, including digital dollarisation and challenges in monitoring illicit financial flows.

To address these concerns, the IMF urged Nigerian authorities to sustain macroeconomic reforms aimed at strengthening confidence in the naira and preserving monetary stability. According to the report, maintaining a credible domestic currency remains the most effective defence against excessive reliance on foreign-currency-backed digital assets.

The Fund also called for stronger regulatory oversight, recommending that Nigeria establish clear rules for stablecoin issuers and align its regulatory framework with emerging international standards while adapting them to local realities.

In addition, the IMF stressed the need for improved data collection and monitoring through the integration of blockchain analytics and reporting mechanisms covering naira-to-stablecoin transactions. Such measures, it said, would enable regulators to identify emerging risks and respond more effectively.

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The fourth recommendation focuses on upgrading payment infrastructure to support faster, cheaper and more interoperable cross-border transactions, thereby reducing dependence on informal and less-regulated payment channels.

Nigeria has become one of the world’s leading markets for crypto assets and stablecoins. According to the IMF, the country received about $59 billion in crypto-asset inflows between July 2023 and June 2024. Nigeria ranked second globally in the 2024 Chainalysis Global Crypto Adoption Index and sixth in the 2025 edition, accounting for roughly 60 per cent of sub-Saharan Africa’s stablecoin inflows since 2019.

The report attributed the growth to several factors, including smartphone-based instant settlements, lower transaction costs, high inflation, naira depreciation and foreign exchange restrictions experienced between 2023 and 2024. Stablecoins are increasingly being used for remittances, international supplier payments and as a store of value against local currency fluctuations.

The IMF acknowledged that wider stablecoin adoption could enhance financial inclusion, support trade and improve remittance flows. Nevertheless, it cautioned that extensive use of U.S. dollar-denominated stablecoins could weaken demand for the naira and reduce the effectiveness of domestic monetary policy.

It also highlighted concerns over financial integrity, noting that the migration of funds from regulated banking channels to digital wallets and exchanges could create gaps in anti-money laundering and counter-terrorism financing oversight.

The Fund concluded that stablecoins are likely to remain a permanent feature of the financial landscape, serving as a complement rather than a replacement for traditional financial systems. It urged Nigerian policymakers to balance innovation with effective regulation, arguing that the country’s long-term success will depend on maintaining confidence in the naira while building a robust supervisory framework capable of managing emerging digital financial risks.

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Nigeria can produce 1.9 million barrels of crude oil per day — NUPRC

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THE Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that Nigeria has the potential to produce 1.9 million barrels of crude oil per day (mbpd), having reached a peak production of 1.86 mbpd in May.

During a meeting with the Chairman of the Nigerian Revenue Service (NRS), Dr Zacch Adedeji, NUPRC’s Chief Executive Officer, Mrs Oritsemeyiwa Eyesan, emphasised the country’s commitment to ramping up production.

She acknowledged existing challenges, such as infrastructure issues and asset integrity, but expressed determination to address them.

Eyesan also highlighted the need to enhance human capacity within the industry, stating that growth requires investment in talent development to meet increasing demands.

She mentioned that one of her key objectives upon assuming office was to digitalise NUPRC’s operations, a goal that has already been achieved.

She commended the NRS chairman for his role in driving reforms that led to the enactment of the NRS Act, noting that the transfer of revenue collection responsibilities has been seamless.

Eyesan reiterated the Commission’s commitment to creating an enabling environment for oil and gas operators.

“We are here to support their businesses, ensuring they not only survive but thrive. When we grow the industry, everyone benefits,” she added.

Dr Adedeji praised the Commission for its dynamism, professionalism, and transparency, promising to maintain collaboration with NUPRC, especially on matters related to the new Act’s revenue collection functions.

He stated: “It is in Nigeria’s interest that we work together to increase revenue for the country in a transparent manner for the benefit of all Nigerians. My role is to collect revenue, not generate it. I will support you in collecting your royalties.”

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He assured that the NRS would continue to support NUPRC in achieving its shared goal of increasing government revenues in a fair, transparent, and sustainable way.

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