Dangote Refinery Targets Full Transition to Local Crude Supply Before Year-End
The 650,000-barrel-per-day Dangote Refinery, situated in Lagos’ Ibeju-Lekki area, is on course to process only Nigerian crude oil by the end of 2025. This strategic shift aims to replace a substantial volume of imported crude currently needed for domestic refining.
According to a Bloomberg report, the facility sourced about half of its crude requirements from local producers in June. Devakumar Edwin, Vice President of Dangote Industries, stated in an interview that the refinery anticipates transitioning fully to domestic crude before the year concludes, as several long-term foreign supply contracts are expected to expire.
The establishment of the refinery was envisioned as a transformative solution for Nigeria, the largest oil producer in Africa, to curb its dependence on costly imported refined products a practice long plagued by inefficiencies and corruption. Though the plant has contributed to Nigeria becoming a net exporter of petroleum products, early operations required a mix of overseas crude due to limitations in domestic supply.
Complicating matters, international oil companies have gradually exited onshore and shallow water operations, leaving local firms with limited capacity to fill the gap. Challenges such as pipeline vandalism and oil theft in the Niger Delta have also constrained crude availability.
Since beginning operations, the refinery has sourced crude from countries including Brazil, Angola, Ghana, and Equatorial Guinea. However, Edwin expressed optimism that stronger ties between the facility, local traders, and government authorities will secure consistent domestic supply moving forward.
In June, over half of the refinery’s feedstock came from Nigerian producers, while the remainder was imported. Operations currently process around 550,000 barrels of crude daily, with scheduled cargo deliveries from Nigeria’s national oil company expected to continue in the months ahead.
Commissioned in May 2023, the Dangote Refinery was designed to help address Nigeria’s long-standing fuel shortages and improve energy security for the nation.
