- Dangote Refinery to import 12 million barrels of US crude oil.
- Local crude shortages hinder plans for 650,000bpd production capacity.
- Refinery expands storage tanks as it boosts fuel supply to Nigeria.
The Dangote Petroleum Refinery, Africa’s largest refinery, is set to receive 12 million barrels of crude oil from the United States in February 2025, The Africa Report revealed on Monday.
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EKO HOT BLOG reports that this move comes as local crude supply challenges from the Nigerian National Petroleum Company Limited (NNPC) hinder the refinery’s goal of achieving its full production capacity of 650,000 barrels per day (bpd).
Currently operating at 500,000bpd, the $20bn Lekki-based refinery has struggled to secure adequate feedstock from the NNPC, which is only able to supply 350,000bpd out of the 450,000bpd allocated for local consumption. To bridge the gap, the refinery is importing crude and increasing storage capacity by building eight additional tanks, boosting its storage by 41.67% to 3.4 billion liters.
President Bola Tinubu’s naira-for-crude policy, implemented in 2024, initially directed NNPC to sell crude to local refineries in naira. However, with the refinery’s growing demand and NNPC’s limitations, the Dangote refinery has sought international supplies. Officials revealed that 550,000bpd of a blend of Nigerian crude is required to meet operational needs, but local supply reliability remains a major challenge.
The refinery is also pursuing term contracts for crude, including a tender issued last year to purchase 24 million barrels of West Texas Intermediate Midland crude over 12 months. It continues to supply petrol, diesel, and aviation fuel to Nigeria and other countries, while expanding its storage and sourcing strategies to sustain operations.
