Dangote Refinery Imports More Crude Oil From US, Gives Reasons

• Dangote Petroluem Refinery has increased its processing level and is finding it difficult to source crude locally
• To close the gap and meet its production requirement, the refinery has decided to increase the import of US crude
• New data shows that Dangote refinery has sourced about one-third of its crude from the US in 2025

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Dangote Refinery, Africa's largest oil processing plant located near Lagos, has increased its imports of US crude oil this year.

The refinery’s reliance on imported crude for production underscores Nigeria’s ongoing oil production struggle despite various promises and the naira for crude policy.

Nigeria miss crude oil production target

According to the May 2025 Monthly Oil Report by the Organisation of the Petroleum Exporting Countries (OPEC), Nigeria’s crude oil production averaged 1.468 million barrels per day (mbpd) in the first quarter of 2025, significantly below the 2 mbpd target set in the federal budget.

While the output marks a modest increase from the 1.435 mbpd recorded in the fourth quarter of 2024, it still underscores the country’s ongoing struggle to meet its production goals.

A breakdown of monthly figures shows production stood at 1.465 mbpd in February, dropped to 1.401 mbpd in March, and rose to 1.486 mbpd in April.

OPEC’s report highlighted the persistent challenges facing Nigeria’s oil sector, including underinvestment, pipeline vandalism, and operational disruptions.

Despite falling below domestic production goals, Nigeria retained its position as Africa’s leading crude oil exporter, BusinessDay reports.

Dangote seeks crude oil solution from abroad

A spokesman for Dangote said the increased use of US oil reflects the refinery’s rising processing levels and a reduction of Nigerian crude that’s available to buy.

The refinery, which has been key in supplying fuels to Nigeria's population of 228 million, has sourced approximately one-third of its crude from the United States, with a notable preference for West Texas Intermediate (WTI), a Midland grade, according to data compiled by Bloomberg from ship tracking records.

These purchases have not only supported Dangote's operational needs.

The decision to import U.S. crude also coincided with unique market conditions, including weaker demand for WTI Midland in Asia due to Chinese tariffs on U.S. crude and ample supplies of competing grades like Abu Dhabi's Murban crude.

In recent tenders, Dangote Refinery is set to receive approximately 14 million barrels of WTI Midland during June and July alone, with trading giant Vitol Group emerging as a significant supplier, according to vessel booking data.

Depot owners reduce fuel cost

Earlier, Legit.ng reported that fuel depot owners have reduced the price of petrol below the rate offered by Dangote Refinery, intensifying competition in Nigeria’s downstream sector.

The move comes as the Nigerian National Petroleum Company Limited (NNPC) announced a new pump price of N870 at its filling stations in Lagos, also below the rate offered by Dangote retail partners.

Multiple depots across Lagos, Warri, and Delta show operators such as AITEO, AIPEC, A.A. Rano, and NIPCO are offering petrol at between N826 and N826 per litre as of Wednesday, June 3

Source: Legit.ng