Aliko Dangote, President of the Dangote Group, has revealed that the 650,000-barrel-per-day Dangote Petroleum Refinery is increasingly sourcing crude oil from the United States due to ongoing domestic supply challenges. The refinery, which commenced operations earlier this year, is projected to import approximately 17.65 million barrels of crude oil between April and July 2025, with about 3.65 million barrels already delivered over the past two months.
During a visit by the Technical Committee of the One-Stop Shop (OSS) for the Naira-for-Crude Initiative, Dangote explained that continued supply shortfalls from local sources have necessitated the reliance on U.S. crude. He noted that while the naira-for-crude policy has positively impacted the economy—reducing petroleum product prices, easing forex pressure, and stabilizing the naira—the refinery has struggled to secure sufficient volumes from Nigeria.
According to company data, U.S. crude, particularly the West Texas Intermediate (WTI) Midland grade, now constitutes a significant portion of the refinery’s feedstock. In fact, U.S. crude accounted for nearly a third of all shipments to the facility this year, surpassing allocations from domestic producers. Between December 2024 and July 2025, the refinery is expected to receive 27.1 million barrels of U.S. crude, compared to 46.2 million barrels from local sources.
The facility has already received 3.65 million barrels through 21 shipments between April 6 and May 28 via the Lekki Deep Seaport, and is scheduled to take in an additional 9 million barrels in June and 5 million barrels in July.
Experts say the refinery’s preference for U.S. crude is driven by both quality and consistency. WTI is a light, sweet crude that is easier and more cost-effective to refine into high-value products such as petrol, diesel, and aviation fuel. While Nigeria produces comparable grades like Bonny Light and Qua Iboe, these are often more expensive, prone to supply disruptions, and affected by infrastructure limitations.
“Feedstock reliability is essential for a refinery of this scale,” said a senior analyst at Rystad Energy. Randy Hurburun of Energy Aspects Ltd. added that WTI provides better yields and gasoline blending capabilities than some Nigerian crudes.
Despite the foreign sourcing, the Dangote Refinery is designed to process a wide range of crude grades, including African, Middle Eastern, and U.S. variants. The company asserts that the refinery is capable of meeting 100% of Nigeria’s domestic demand for petrol, diesel, kerosene, and jet fuel—with excess available for export.
The OSS Technical Committee, led by Mrs. Maureen Ogbonna, praised the refinery as a milestone in Nigeria’s industrial revolution. She described the facility as transformative across sectors—from pharmaceuticals and construction to agriculture and petrochemicals—and encouraged Dangote to remain undeterred by criticism.
“This is more than just a refinery; it is a symbol of national emancipation and economic transformation,” Ogbonna remarked. She reaffirmed the committee’s commitment to removing regulatory and operational obstacles that hamper crude supply under the naira-for-crude arrangement.
Meanwhile, the revival of the naira-for-crude deal, following its initial phase which ended in March 2025, has been described by the government as a long-term policy aimed at supporting local refining and conserving foreign exchange. The Dangote Group has credited the policy with enabling consistent reductions in fuel prices, contributing to economic relief for Nigerian consumers.
In a recent statement, Anthony Chiejina, Group Chief Branding and Communications Officer, reiterated the company’s dedication to maintaining price stability amid global market fluctuations. “We remain deeply committed to supporting the Nigerian economy and reducing the burden on consumers,” he said.
As the refinery works towards achieving full operational capacity, it continues to push for a more reliable and diversified crude supply base, underscoring the urgent need for strengthened domestic production and policy alignment.
