Nigeria Becomes Top Crude Buyer From US as Dangote Refinery Drives Oil Trade Reversal
- Data from the US Energy Information Administration shows Nigeria has become a top buyer of American crude oil
- The move comes amid an increase in crude imports by the massive Dangote Refinery based in Lagos, Nigeria
- Experts say the shift signals a transformation in global oil trade dynamics, driven by changing refinery demand, maintenance cycles in the US
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
For the first time on record, the United States exported more crude oil to Nigeria than it imported from the country, a dramatic reversal that unfolded in February and March 2025, according to newly released data from the US Energy Information Administration (EIA).
The shift signals a transformation in global oil trade dynamics, driven by changing refinery demand, maintenance cycles in the US, and the rise of new refining powerhouses like Nigeria’s Dangote Refinery.
Source: Getty Images
Dangote Refinery ups demand for imports
The Dangote Refinery, boasting a massive 650,000 barrels per day (b/d) nameplate capacity, was a key player in this reversal.
Having started operations in January 2024, the refinery ramped up production significantly in early 2025.
To meet rising demand for crude feedstock, which local suppliers struggled to fulfil, Dangote sourced increasingly from international markets, particularly the United States.
In February 2025, US crude exports to Nigeria hit 111,000 b/d, climbing to 169,000 b/d in March.
Meanwhile, U.S. imports from Nigeria plummeted to 54,000 b/d in February, and only slightly recovered to 72,000 b/d in March.
US refinery downtime limits imports
Part of the reason for the US slowdown in Nigerian crude imports was local refinery maintenance. In early 2025, the Phillips 66 Bayway refinery in New Jersey — a key buyer of Nigerian light sweet crude — went offline for scheduled maintenance.
At the same time, growing volumes of light tight oil (LTO) from the US Permian Basin were increasingly available and suited for Dangote’s refining configuration. This made American barrels both accessible and economically attractive.
Africa’s refineries shift global trade flow
Though Nigeria briefly regained export momentum later in the year — aided by Dangote’s maintenance in Q2 and US refineries returning to full capacity — analysts say the trade reversal is a taste of future patterns.
“This isn’t just a fluke. It’s a glimpse into tomorrow’s oil trade routes,” said Chinedu Ekekwe, an energy economist. “With more African refineries coming online, reverse crude flows from the US to Africa could become the norm.”
Domestic supply still a pressing issue
Despite being a major oil producer, Nigeria’s reliance on imported crude for local refining raises policy red flags. Under the Petroleum Industry Act (PIA), producers are required to supply local refineries first through the Domestic Crude Supply Obligation (DCSO).
Source: Getty Images
But enforcement remains weak. Energy stakeholders are now urging the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to strengthen oversight and ensure that domestic refineries like Dangote are fed by Nigerian crude — not imports.
Nigeria’s future as a crude importer?
As Nigeria’s refining capacity expands, it could paradoxically emerge as a net crude importer unless local logistics and upstream bottlenecks are addressed.
Without strong domestic supply mechanisms and investment in production, the country may continue buying abroad — despite sitting atop vast reserves of its oil.
Dangote Refinery sees low activity
Legit.ng earlier reported that depot owners in Lagos have slashed petrol prices, intensifying pressure on the Dangote Refinery, which is already grappling with dwindling buyer interest.
On Tuesday, July 22, 2025, despite quoting ₦820.50 per litre for Premium Motor Spirit (PMS), the refinery experienced minimal activity.
Petroleum marketers are now adopting a cautious approach, holding off purchases amid strong indications that prices may dip further in the coming days.
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Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
