Dangote Refinery Ramps Up with U.S. Crude Amid Nigeria’s Oil Supply Challenges

Dangote Refinery Ramps Up with U.S. Crude Amid Nigeria’s Oil Supply Challenges

Africa’s largest crude oil refinery, the $20 billion Dangote Refinery, has increasingly turned to U.S. oil imports to meet its feedstock requirements—despite Nigeria’s position as the continent’s top crude producer.

The refinery, with a processing capacity of 650,000 barrels per day (bpd), began sourcing significant volumes of U.S. West Texas Intermediate (WTI) Midland crude in 2025, according to Bloomberg ship-tracking data.

During its early 2024 startup phase, American crude made up a smaller share of the refinery’s supply. However, as of mid-2025, U.S. crude now accounts for roughly one-third of its intake—almost double the previous proportion.

In June alone, the refinery booked about 300,000 bpd of WTI, and plans for July include the import of at least 5 million barrels, or approximately 161,000 bpd.

The increasing reliance on U.S. crude highlights a paradox: while Nigeria is a major OPEC member and Africa’s top oil producer, it struggles to meet the operational needs of its largest refinery.

The inconsistency points to broader challenges in Nigeria’s upstream sector, including underinvestment, oil theft, and infrastructure inefficiencies.

Experts point to technical and logistical considerations behind the shift. According to Randy Hurburun, senior refinery analyst at Energy Aspects, WTI Midland crude offers superior refining yields, including higher-quality reformate and better gasoline blending characteristics.

The availability of U.S. crude has also improved due to a drop in Asian demand, partially driven by ongoing U.S.-China trade tensions, making more WTI barrels accessible on the global market.

As a result, Nigerian crude grades have tightened, a Dangote Refinery spokesperson confirmed, suggesting that the share of U.S. crude in future shipments may rise even further.

Located in the Lekki Free Zone near Lagos, the Dangote Refinery began producing diesel and naphtha in early 2024, with gasoline output starting in September. By early 2025, it had ramped up to 85% of its full capacity, processing around 550,000 bpd.

Despite the irony of a Nigerian refinery importing crude oil, the decision reflects strategic pragmatism. U.S. shale oil is readily available, competitively priced, and technically suitable for high-efficiency refining.

Meanwhile, Nigeria continues to grapple with systemic barriers in oil production and supply chain logistics.

Once fully operational, the Dangote Refinery is expected to meet Nigeria’s entire domestic demand for refined petroleum products and generate surpluses for export across Africa and beyond.

Its performance could mark a turning point in the nation’s energy independence—but for now, its success is being powered in part by American crude.

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