The Dangote Petroleum Refinery is set to take delivery of up to 12 million barrels of crude oil from the United States, according to a report by The Africa Report. The refinery’s reliance on imported crude stems from difficulties in securing adequate local supplies, which has impeded its ability to operate at full refining capacity.
The $20 billion Lekki-based refinery, which aims to reach its full production capacity of 650,000 barrels per day (bpd) by June 2025, is currently facing supply constraints from the Nigerian National Petroleum Company Limited (NNPC). These challenges have led the refinery to look beyond Nigeria’s borders for feedstock to meet its ambitious production targets.
Reports confirm that the shipment of 12 million barrels of crude oil has already departed the United States and is expected to arrive in Nigeria by February. An insider source revealed to The Africa Report, “About 12 million barrels of crude have departed the US and should arrive in Nigeria by February.”
Hobnob News gathered that the Dangote Petroleum Refinery has increased production to approximately 500,000bpd, with the goal of achieving its full capacity of 650,000bpd by midyear. However, limited crude supply from the NNPC has necessitated the importation of additional crude oil to maintain operations.
While the naira-for-crude deal initiated by President Bola Tinubu in 2024 remains in place, officials noted that local supplies are insufficient to meet the refinery’s daily requirements. Sources explained that the NNPC is currently able to supply only 350,000bpd to the refinery out of the 450,000bpd allocated for Nigeria’s domestic consumption. Consequently, the Dangote facility has had to source crude oil internationally to fill the gap.
“Currently, we are operating at 500,000bpd and will ramp up to 650,000bpd by midyear,” an official at the refinery stated. “To achieve this, it is a normal process to source crude oil from wherever it is available.”
In July 2024, President Tinubu directed the NNPC to sell crude oil to local refineries in naira. By October, the naira-for-crude arrangement was fully implemented, with the Dangote Refinery being the primary beneficiary. Officials confirmed that as additional refineries like the Port Harcourt and Warri facilities come online, they too will be considered for the naira-for-crude program.
Projections from the Nigerian Upstream Petroleum Regulatory Commission indicate that the Dangote Refinery will require 550,000 barrels of Nigerian crude oil daily—approximately 17.05 million barrels monthly and 99.55 million barrels from January to June 2025. To address current supply challenges, the refinery is constructing eight additional storage tanks to accommodate imported crude oil, increasing its crude storage capacity by 41.67 percent to 3.4 billion liters.
Speaking on the necessity of importing crude, Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries, noted that “low crude supply from the NNPC is driving import dependence.” He explained, “Importing crude from other countries instead of buying locally means that our crude stockpiles will have to be higher.”
In May 2024, the refinery issued a term tender to purchase two million barrels of West Texas Intermediate Midland crude monthly for 12 months, amounting to 24 million barrels of crude over one year. This strategic move ensures the refinery has a steady supply of feedstock to meet its production targets.
The Dangote Refinery currently supplies petrol, diesel, and aviation fuel to Nigeria and other countries, solidifying its position as a major player in the energy sector. With efforts underway to address supply constraints, the facility is poised to significantly contribute to Nigeria’s energy security and reduce dependency on fuel imports.
