The Dangote Petroleum Refinery, a $20 billion project in Nigeria, is awaiting the arrival of 12 million barrels of crude oil from the United States, as local supply shortages hinder its ability to reach full refining capacity.
Originally targeting a production capacity of 650,000 barrels per day by June 2025, the refinery has faced delays due to limited local crude availability from the Nigerian National Petroleum Company Limited (NNPC).
Sources confirmed that the 12 million barrels of crude have already departed from the United States and are expected to arrive in Nigeria next month. The Dangote refinery has ramped up its production to around 500,000 barrels per day but remains short of the target figure due to inadequate local supply.
The NNPC is struggling to meet the demand for crude, as the national oil company can only provide around 350,000 barrels per day from the 450,000 barrels allotted for domestic consumption.
Refinery Seeks Global Crude Supplies
Given its current production capacity, Dangote officials have acknowledged the need to source crude oil from outside Nigeria to meet daily feedstock requirements. While production has reached 500,000 barrels per day, officials are confident that the refinery will reach its 650,000-barrel per day target by mid-2025.
“It is a normal process to source crude oil anywhere it is available,” one refinery official explained.
Naira-for-Crude Deal with NNPC
As part of ongoing efforts to address the country’s energy needs, President Bola Tinubu ordered the NNPC to sell crude to local refineries in naira, as opposed to U.S. dollars. This move is aimed at increasing domestic production capabilities.
In October, the naira-for-crude deal was expanded to include only the Dangote refinery, with a plan to include other refineries as they come online, including those in Port Harcourt and Warri.
Import Reliance Growing
Despite these agreements, Dangote refinery is set to rely on imported crude for the foreseeable future. According to the refinery’s crude oil production forecast, Dangote will require 550,000 barrels of Nigerian crude oil daily, amounting to 17.05 million barrels per month and 99.55 million barrels between January and June 2025.
In response to the growing demand for crude, Dangote is currently building eight additional storage tanks to accommodate imported crude and ensure a steady supply as local reserves become increasingly unreliable.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries, emphasized that limited crude supply from NNPC is driving the refinery’s growing dependence on imports.
“Importing crude from other countries means that our crude stockpiles will have to be higher,” Edwin said.
