Dangote Refinery to Rely Fully on Nigerian Crude by End of 2025

Dangote Industries Ltd. has announced plans for its flagship refinery to shift exclusively to Nigerian crude oil by the close of 2025, a move that could drastically cut the country’s reliance on imported crude.

This development was disclosed in a recent Bloomberg report, which highlighted that nearly half of the refinery’s crude feedstock in June came from local oil producers. According to the company, this share is expected to rise significantly in the coming months.

“We expect some of the long-term contracts will expire,” said Devakumar Edwin, Vice President of Dangote Industries, during an interview conducted at the company’s expansive refinery site. “Personally, and as a company, we expect that before the end of the year, we can transition 100% to local crude.”

The $19 billion facility, with a capacity of 650,000 barrels per day, was originally conceived as a solution to Nigeria’s chronic fuel supply issues. By refining crude oil locally, the country aims to eliminate its dependence on imports—an approach that has historically been plagued by inefficiencies and corruption.

Since beginning operations, the refinery has already transformed Nigeria into a net exporter of refined petroleum products. However, the journey to full capacity has required supplementing local supplies with imports from countries such as Brazil, Angola, Ghana, Equatorial Guinea, and the United States.

Compounding the challenges are a series of supply constraints within Nigeria’s upstream sector. As international oil majors continue to exit onshore and shallow-water fields, domestic firms with limited production capacity have struggled to fill the gap. Furthermore, persistent crude theft, pipeline sabotage, and contract obligations with foreign buyers have restricted domestic availability.

Despite these hurdles, Edwin is optimistic. He noted that improved collaboration with local oil marketers and stronger ties with the government would bolster domestic crude supply. In June, domestic producers accounted for 53% of the refinery’s feedstock, with the remaining 47% sourced from the U.S.

As part of the ongoing transition, Dangote Refinery was allocated five cargoes by the Nigerian National Petroleum Company (NNPC) in July and is slated to receive the same number in August. Each shipment contains nearly one million barrels.

Commissioned in May 2023, the Dangote Refinery was heralded as a game changer for Africa’s energy landscape. During a recent visit, the President of the ECOWAS Commission, Dr. Omar Alieu Touray, hailed the project as “a beacon of hope for Africa’s future” and a testament to the vital role the private sector can play in driving industrial transformation across the region.