Dangote Refinery to Receive 12 Million Barrels of Crude as Local Supply Struggles Persist

The Dangote Petroleum Refinery, Africa’s largest oil refining facility, is set to receive a shipment of 12 million barrels of crude oil from the United States by February, African Report reports. This development comes as the refinery faces difficulties securing adequate crude oil supplies locally, which has hindered its ability to operate at maximum capacity.

Despite an agreement with the Nigerian National Petroleum Company Limited (NNPCL) to supply 385,000 barrels per day (bpd) of crude oil, payable in naira, the NNPCL has struggled to meet its obligations. As a result, the refinery has increasingly relied on international crude shipments to maintain operations.

Currently operating at approximately 500,000 bpd, the Dangote Refinery aims to ramp up production to its full capacity of 650,000 bpd by June 2025. To facilitate this expansion, the facility is adding eight storage tanks, increasing its total crude storage capacity by 41.67%, or up to 3.4 billion liters.

The decision to import crude from the U.S. highlights ongoing challenges in Nigeria’s oil sector, including production shortfalls and logistical bottlenecks. Industry experts have expressed concern that this reliance on imported crude could undermine the goal of achieving self-sufficiency in refined petroleum products.

The Dangote Refinery, a $19 billion investment owned by billionaire businessman Aliko Dangote, is a cornerstone of Nigeria’s plans to reduce dependence on imported fuel and stabilize domestic fuel prices. However, achieving this vision will require addressing the structural inefficiencies in local crude supply chains.