The Dangote Petroleum Refinery is on track to end its reliance on imported crude oil by the close of 2025, marking a significant step toward energy self-sufficiency for Nigeria. The $20 billion facility, located in Lagos and built by Africa’s richest man, Aliko Dangote, is expected to switch entirely to sourcing crude from within Nigeria before the year wraps up.
According to a Bloomberg report, the refinery received over half of its crude oil supply in June from Nigerian producers. This local sourcing is expected to grow in the coming months as existing contracts with foreign suppliers wind down.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, confirmed the company’s plan to transition to 100% local crude. He noted that many of their international contracts are nearing expiration, allowing the facility to increase purchases from Nigerian suppliers.
“We anticipate that several long-term foreign contracts will conclude soon. The goal is to fully transition to Nigerian crude before the end of the year,” Edwin said.
Despite a government-backed naira-for-crude initiative, the refinery has until recently relied heavily on U.S. crude. Supply challenges from within Nigeria including oil theft, sabotage of pipelines, and insecurity in the Niger Delta have forced the company to import crude from countries like Brazil, Angola, Ghana, and Equatorial Guinea.
In June alone, the refinery processed 550,000 barrels of crude per day, sourcing 53% domestically and 47% from the United States. Edwin expressed optimism that stronger collaboration between the refinery, domestic oil traders, and government agencies would ensure a more consistent supply of Nigerian crude moving forward.
Meanwhile, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reported in its 2024 review that local oil producers have voiced concerns about government directives compelling them to prioritize domestic supply particularly to Dangote’s refinery under the Domestic Crude Supply Obligations policy. These producers fear such mandates could interfere with their international commitments.
Despite these concerns, Dangote Refinery is set to receive five cargoes from the Nigerian National Petroleum Company (NNPC) in both July and August. Each shipment will carry approximately one million barrels of crude.
Dangote’s long-term vision for the refinery is to reduce Nigeria’s dependence on imported fuel by refining the country’s own crude locally. The facility, which has a nameplate capacity of 650,000 barrels per day, is already reshaping Nigeria’s energy landscape by making the country a net exporter of refined petroleum products.
As the refinery ramps up operations and shifts fully to local sourcing, it could significantly strengthen Nigeria’s economy, create jobs, and reduce fuel costs by eliminating the need to import refined products.
