The Dangote Petroleum Refinery, Africa’s largest crude processing facility, has blamed domestic crude shortages for its growing reliance on U.S. oil imports. The company’s president, Aliko Dangote, disclosed this during a visit by the Technical Committee of the One-Stop Shop (OSS) on the sale of crude and refined products in naira.
In a statement released Thursday, Dangote explained that although the naira-for-crude initiative had significantly eased forex pressure and contributed to local price stability, persistent shortfalls in domestic supply were forcing the 650,000-barrels-per-day facility to increasingly source crude from the United States. So far, the refinery has imported about 3.65 million barrels of U.S. crude between April and May 2025 and expects to receive an additional 14 million barrels by July, bringing total planned imports over four months to 17.65 million barrels.
WTI Preferred as Domestic Supply Falls Short
Industry data confirms that a large share of these imports comprises the WTI Midland grade, valued for its gasoline-blending properties and low sulfur content. Analysts say this grade offers superior reformate yields compared to some Nigerian blends.
“Feedstock predictability is critical. A facility of this scale cannot afford supply disruptions, even if the crude is sourced from right next door,” said a senior Rystad Energy analyst. Energy Aspects’ refinery specialist Randy Hurburun also noted WTI’s suitability, citing better yields and technical performance.
The PUNCH had earlier reported that 21 tankers delivered over 3.6 million barrels of crude oil to Dangote’s Lekki Deep Seaport between April 6 and May 28. More are scheduled to follow, with U.S. supplies outpacing local allocations despite government commitments under the naira-for-crude initiative.
Policy Gaps and Market Consequences
While Nigeria’s Petroleum Industry Act mandates Domestic Crude Supply Obligations (DCSO), upstream operators have often prioritized foreign buyers. This has left even major refineries scrambling for feedstock. From December 2024 to May 2025, Dangote reportedly received 46.2 million barrels of local crude, compared to over 27.1 million barrels sourced from U.S. markets within the same window.
The OSS Coordinator, Mrs. Maureen Ogbonna, praised the refinery’s impact across multiple sectors, calling it a symbol of Nigeria’s industrial rebirth. She also reaffirmed the committee’s readiness to eliminate bureaucratic and logistical hurdles hampering the full execution of the naira-for-crude policy.
Dangote, in turn, reiterated his commitment to national development and said the $20 billion refinery would continue supporting price stability and economic growth.
However, the increasing volume of dollar-denominated imports could pose fresh challenges to Nigeria’s forex reserves, an irony for a project designed to reduce import dependence.
Despite this, the refinery remains bullish. “We are immensely grateful to President Bola Tinubu for making this possible through the commendable naira-for-crude initiative,” the company said recently, vowing to maintain stable domestic pricing regardless of global oil volatility.
