Dangote Refinery to Switch Fully to Nigerian Crude by December
Africa’s largest oil refinery, owned by billionaire Aliko Dangote, is set to rely entirely on Nigerian crude oil by the end of 2025, potentially ending the country’s decades-long dependence on imported fuel and foreign crude supply chains.
Vice President of Dangote Industries, Devakumar Edwin, told Bloomberg the 650,000-barrel-per-day facility sourced 53% of its crude from domestic producers in June, and expects to go fully local within months as legacy export contracts expire. “We expect that before the end of the year we can transition 100% to local crude,” Edwin said.
The refinery, located near Lagos, has already begun turning Nigeria from a net fuel importer to a net exporter, disrupting a cycle that saw the country ship out its oil only to buy back refined fuel — often at inflated prices and under opaque deals.
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Since it began operations, the plant has had to supplement with crude from the US, Brazil, Angola and Ghana due to challenges with local sourcing — including insecurity in the Niger Delta, waning investments by oil majors, and operational struggles among smaller local firms.
But a recent uptick in cooperation between Dangote Industries, indigenous oil traders, and the Nigerian government is now unlocking access. In July and August, Dangote is scheduled to receive five crude cargoes each month from the Nigerian National Petroleum Company (NNPC), with each cargo containing nearly one million barrels.
The refinery is currently running at 550,000 barrels per day — still shy of full capacity, but significant enough to alter Nigeria’s fuel market dynamics.
