Dangote Industries Ltd. has announced plans for its giant refinery to depend entirely on Nigerian crude oil by the end of 2025, a move that could significantly cut the country’s reliance on imported crude. The development was reported by Bloomberg, which noted that Africa’s largest refinery is steadily shifting its supply base to local producers.
Speaking at the refinery complex last week, Devakumar Edwin, vice president at Dangote Industries, revealed that about half of the crude processed by the facility in June came from Nigerian suppliers. He expressed optimism that existing long-term contracts with foreign suppliers would phase out soon, paving the way for full dependence on local crude. “Personally, and as a company, we expect that before the end of the year we can transition 100% to local crude,” Edwin said.
The 650,000-barrel-per-day refinery, located near Lagos, was conceived to reverse Nigeria’s paradox of exporting crude oil only to import expensive refined products. Since operations began, the plant has helped Nigeria become a net exporter of petroleum products, though initial operations still leaned heavily on imported crude to make up for shortfalls from domestic traders.
Challenges within Nigeria’s oil sector have complicated efforts to fully localize supply. As international oil majors pull back from onshore and shallow water operations, smaller local companies have struggled to match their output. Widespread issues such as oil theft and attacks on pipelines in the Niger Delta have also constrained production, limiting crude availability for domestic refiners.
Despite these hurdles, the Dangote Refinery has continued to ramp up its operations, currently processing about 550,000 barrels per day. In June, 53% of its feedstock was sourced from Nigerian producers, while the remaining 47% came from countries like the United States. Edwin disclosed that Dangote has also purchased crude from Brazil, Angola, Ghana, and Equatorial Guinea to keep up with refining needs.
Looking ahead, Dangote is scheduled to receive five cargoes from the Nigerian National Petroleum Company (NNPC) in July and the same number in August, with each shipment carrying nearly a million barrels. Edwin believes that improving ties between the refinery, local traders, and the government will ensure a more stable domestic crude supply in the months to come.
Commissioned in May 2023, the Dangote Refinery stands as the largest of its kind in Africa. During a recent tour, the President of the ECOWAS Commission, Dr. Omar Alieu Touray, hailed the facility as a symbol of Africa’s industrial potential and a striking example of what the private sector can achieve in driving regional economic growth. With plans to fully transition to Nigerian crude by the close of 2025, the refinery could soon anchor a new chapter in the nation’s energy independence.
