The Dangote Petroleum Refinery has increasingly turned to crude oil imports from the United States to sustain operations, with its founder, Aliko Dangote, blaming persistent domestic crude shortages for the shift.
Between April and July 2025, the $20 billion, 650,000 barrels-per-day refinery is projected to import 17.65 million barrels of crude oil, with 3.65 million barrels already received, according to findings. A large share of these imports is West Texas Intermediate (WTI) crude from the U.S., outpacing domestic allocations under the Federal Government’s naira-for-crude exchange policy.
Speaking during a visit by the Technical Committee of the One-Stop Shop (OSS) for naira crude sales, Dangote commended the initiative for helping stabilize petroleum product prices and easing foreign exchange pressure. However, he noted that inconsistent supply from local producers, particularly the Nigerian National Petroleum Company Limited (NNPC), had made reliance on U.S. imports inevitable.
“This refinery was designed to transform Nigeria’s energy landscape, but domestic supply bottlenecks are a major setback,” he said.
The OSS Coordinator, Mrs. Maureen Ogbonna, hailed the refinery as the centerpiece of Nigeria’s industrial revolution, calling it “a breath of fresh air” for multiple sectors from construction to pharmaceuticals. She reaffirmed the government’s commitment to supporting local refineries through stable crude supply and regulatory clarity.
According to Bloomberg and Blue Sea Maritime tracking data, the refinery has taken delivery of 22 crude shipments via the Lekki Deep Seaport between April and May. These included significant imports from the U.S., with Nigeria’s Bonny Light and Qua Iboe grades reportedly being costlier and less reliable due to frequent disruptions.
Energy analysts say WTI crude offers better yields and is easier to refine due to its low sulfur content. “For a plant of this magnitude, predictability of feedstock is non-negotiable,” noted Randy Hurburun of Energy Aspects Ltd.
Despite Nigeria’s position as Africa’s largest oil producer, underinvestment and chronic production issues continue to limit crude availability for domestic refineries. Between December 2024 and June 2025, Dangote’s facility received 27.1 million barrels from the U.S., compared to 46.2 million barrels sourced locally—a shortfall attributed to domestic inefficiencies.
Critics warn that heavy reliance on dollar-denominated crude imports could strain Nigeria’s foreign exchange reserves, contradicting the central objective of the naira-for-crude policy. The deal, recently revived by the Tinubu administration, aims to support local refineries and stabilise fuel prices.
In a recent statement, Dangote’s Group Chief Branding Officer, Anthony Chiejina, confirmed the company’s commitment to keeping fuel prices stable through strategic sourcing, while expressing gratitude to President Tinubu for backing the naira-for-crude agreement.
The Dangote refinery is designed to meet 100% of Nigeria’s petrol, diesel, aviation fuel, and kerosene needs, with surplus capacity for exports. As it pushes toward full capacity by mid-2025, stakeholders stress that consistent domestic crude supply will be crucial for the refinery’s sustainability and Nigeria’s energy security.