Table of Contents
Key Points
- Dangote Refinery to process 100% Nigerian crude by 2025, slashing fuel imports and boosting local oil market.
- The refinery now sources 53% of crude locally, and expects full domestic supply as foreign contracts expire.
- Africa’s biggest refinery ramps up to 650,000 bpd, reinforcing Nigeria’s role as regional fuel exporter.
The Dangote Petroleum Refinery, Africa’s largest refinery owned by the continent’s richest billionaire, Aliko Dangote, plans to source 100 percent of its crude from Nigerian producers by the end of 2025, marking a major milestone in Nigeria’s oil industry.
Devakumar Edwin, vice president at Dangote Industries overseeing the plant, told Bloomberg, “We expect long-term foreign crude contracts to expire and transition entirely to domestic supply before year-end.” This shift promises to reduce Nigeria’s dependence on imported refined fuels, curbing corruption and inefficiencies in the supply chain.
Crude shift reshapes Nigeria’s fuel landscape
Since commissioning, the refinery’s gradual ramp-up has already turned Nigeria into a net exporter of diesel, gasoline and aviation fuel. Still, the facility leaned on crude from Brazil, Angola, Ghana and Equatorial Guinea after local production fell short of demand.
Nigeria, an OPEC member, has seen majors retreat from onshore and shallow-water fields, handing concessions to smaller local operators. Combined with pipeline theft and militant attacks in the Niger Delta, domestic output has fluctuated, crimping available feedstock.
Improved ties with state oil firm NNPC and local traders, Edwin added, will secure a steady supply of Nigerian barrels. In June, 53 percent of the refinery’s feedstock was sourced locally; the remaining 47 percent came from the US, per Bloomberg data.
Ramp-up and export dynamics
With roughly five one-million-barrel cargoes scheduled from NNPC in July and August, Dangote Refinery is poised to ramp local sourcing from June’s 53 percent to full reliance on Nigerian grades by year-end. Long-term foreign contracts will unwind, opening slots for domestic barrels.
Currently processing 550,000 bpd, the plant targets 650,000 bpd by December. Full local integration will slash import bills and shore up fuel supplies, cementing Nigeria’s shift from the continent’s top petrol importer to a regional supplier.
Crude theft and pipeline sabotage in the Niger Delta, compounded by the exit of international oil majors, have hindered domestic output. Government security initiatives and fresh equity stakes for local traders aim to stabilize upstream production.
Dangote expands energy footprint
Beyond refining, the Dangote Refinery has launched a $467 million initiative to deploy 4,000 CNG-powered trucks for transporting petrol, diesel, and aviation fuel across Nigeria. The move aligns with a broader national energy transition strategy and supports logistics efficiency amid rising fuel costs.
In parallel, Dangote is expanding his $3 billion fertilizer plant, helping cut Africa’s reliance on imported fertilizers. With an estimated net worth of $27.8 billion (Bloomberg Billionaires Index), Dangote remains the continent’s wealthiest individual.
