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, as local supply challenges hinder its full production capacity of 650,000 barrels per day (bpd).
Currently operating at 500,000bpd, the $20 billion Lekki-based refinery has struggled to secure adequate feedstock from the Nigerian National Petroleum Company Limited (NNPC). Despite an allocation of 450,000bpd for local consumption, the NNPC has only been able to supply 350,000bpd. To address the shortfall, the refinery is importing crude while expanding its storage capacity with the construction of eight additional tanks, increasing total storage by 41.67% to 3.4 billion liters.
The refinery’s reliance on imported crude follows the implementation of President Bola Tinubu’s naira-for-crude policy in 2024, which required the NNPC to sell crude to local refineries in naira. However, due to NNPC’s limitations, the Dangote Refinery has turned to international markets to meet its operational needs.
Officials disclosed that the refinery requires 550,000bpd of a blend of Nigerian crude to function optimally but continues to face challenges with local supply reliability. In response, the refinery is pursuing long-term crude contracts, including a tender issued last year to purchase 24 million barrels of West Texas Intermediate (WTI) Midland crude over 12 months.
In addition to crude imports, the refinery supplies petrol, diesel, and aviation fuel to Nigeria and neighboring countries. Efforts to sustain operations include enhancing storage capacity and diversifying sourcing strategies, ensuring a steady fuel supply to the region.
