Aliko Dangote

President of the Dangote Group, Aliko Dangote, says his 650,000-barrel-per-day refinery has been increasingly reliant on crude oil imports from the United States due to persistent domestic supply shortfalls.

This revelation came during a meeting with the Technical Committee of the Federal Government’s One-Stop Shop (OSS) on crude sales and refined products in naira. Dangote stated that although the naira-for-crude initiative had positively impacted Nigeria’s economy, domestic crude supply remained inadequate.

“Because of the shortage of local crude, we have had to turn to imports from the United States,” he said, according to a statement issued Thursday by the refinery.

The $20bn Dangote Refinery, which began production in 2024, is projected to import 17.65 million barrels of crude between April and July 2025. So far, approximately 3.65 million barrels have already been delivered, with more cargoes expected in the coming months, mostly West Texas Intermediate (WTI) Midland grade from the US.

Data compiled by vessel-tracking firms showed that at least 22 ships delivered 3.01 million barrels of crude to the refinery between April 6 and May 28 through the Lekki Deep Seaport.

The shift marks a significant operational move. Since December 2024, the refinery has imported about 27.1 million barrels from the US, compared to 46.2 million barrels received from the Nigerian National Petroleum Company Limited (NNPCL).

Dangote stressed the importance of dependable crude sources for continuous production. “Feedstock predictability is critical. A facility of this scale cannot afford disruptions,” said a senior analyst at Rystad Energy, echoing concerns over Nigeria’s underinvestment in oil infrastructure.

The OSS Technical Committee Coordinator, Mrs Maureen Ogbonna, praised the refinery, calling it “a national asset that touches every sector from pharmaceuticals to food.” She affirmed the committee’s commitment to resolving logistical and regulatory hurdles to facilitate more domestic crude delivery.

Energy experts say WTI crude offers better yields and gasoline blending properties than Nigerian grades, giving the refinery cost and quality advantages despite the longer supply chain.

The refinery says it remains committed to meeting Nigeria’s domestic fuel demand while also exporting surpluses to international markets.

Punch