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The Dangote Petroleum Refinery, one of Africa’s largest and most ambitious refinery projects, is set to receive 12 million barrels of crude oil from the United States, according to The Africa Report. This development underscores the challenges the $20 billion facility faces as it struggles with insufficient local crude supply to meet its refining goals. The shipment, which departed the U.S. recently, is expected to arrive in Nigeria by February, further highlighting the growing reliance on international sources to fuel the refinery’s operations. The Dangote refinery, located in Lekki, Lagos State, aims to ramp up its refining capacity to 650,000 barrels per day (bpd) by June 2025. However, local supply issues have hindered progress. The Nigerian National Petroleum Company Limited (NNPC), the country’s state oil company, has faced difficulties in meeting its obligations to supply enough crude oil to the refinery. An insider source told The Africa Report, “About 12 million barrels of crude have departed the US and should arrive in Nigeria by February.” This import is a strategic move to ensure the refinery’s production targets are met amid local supply shortages. While the Dangote refinery has already increased its output to about 500,000 bpd, achieving its target of 650,000 bpd by mid-year remains a significant challenge without steady access to crude oil. NNPC is currently struggling to provide the Dangote refinery with the 350,000 bpd required from the 450,000 bpd allocated for Nigeria’s domestic consumption. This mismatch has led refinery officials to look beyond Nigeria’s borders for the necessary feedstock. According to a refinery official, “Currently, we are at 500,000 bpd; we will ramp to 650,000 by midyear. You know what it means? So, it is a normal process to source crude oil anywhere it is available.” In response to the ongoing challenges, the Dangote refinery is actively seeking to bolster its crude oil storage capacity. The facility is constructing eight additional tanks, increasing its storage by 41.67% to a total of 3.4 billion liters. “Importing crude from other countries instead of buying locally means that our crude stockpiles will have to be higher,” explained Devakumar Edwin, Vice President in charge of the oil and gas business at Dangote Industries. The refinery’s decision to import crude oil comes at a time when President Bola Tinubu’s government has been pushing for a “naira-for-crude” deal. Since July 2024, the Nigerian government has directed the NNPC to sell crude oil to local refineries in naira, a move aimed at stabilizing Nigeria’s foreign exchange reserves. In October 2024, the government further restricted the sale of crude to only those refineries involved in petrol production, initially focusing on the Dangote refinery. Although the refinery is benefiting from the naira-for-crude arrangement, sources within the industry acknowledge that the NNPC’s crude supply remains insufficient. The Dangote refinery was expected to require 550,000 barrels of Nigerian crude daily to meet its full production needs, amounting to approximately 17 million barrels per month. However, with local supply falling short, Dangote has had no choice but to source additional crude from global markets. As part of its long-term strategy, the Dangote refinery had previously issued a term tender for two million barrels of West Texas Intermediate (WTI) Midland crude monthly, for 12 months starting in July 2024. This tender for a total of 24 million barrels in one year is further evidence of the refinery’s growing dependence on international crude suppliers. The Dangote refinery is already playing a crucial role in Nigeria’s fuel production, supplying gasoline, diesel, and aviation fuel both domestically and to international markets. Despite the logistical hurdles, the refinery remains optimistic about achieving its ambitious refining targets, with plans to expand its capacity and reduce Nigeria’s reliance on imported refined products. Refinery officials are hopeful that the situation will improve as local crude supply stabilizes. However, the reliance on imported crude highlights the fragility of Nigeria’s oil supply chain and the challenges faced by the country’s refining industry. As the Dangote Petroleum Refinery continues its journey toward full capacity, the importation of crude oil from the United States marks a critical moment in the project’s development. Whether local suppliers, such as the NNPC, can meet the demand of such large-scale refineries in the future will be key to the country’s energy security and economic stability. The situation also emphasizes the need for continued reforms in Nigeria’s oil sector, with the government’s commitment to increasing the capacity of local refineries likely to play a pivotal role in the country’s energy future.

Oil & Gas

Dangote Refinery Faces Crude Oil Supply Challenges, Sources 12 Million Barrels from US

The Dangote Petroleum Refinery, one of Africa’s largest and most ambitious refinery projects, is set to receive 12 million barrels of crude oil from the United States, according to The Africa Report. This development underscores the challenges the $20 billion…

Energy

President Tinubu is Taking In-Country Gas Utilisation to Unprecedented Levels — Soneye, NNPC Ltd Spokesperson

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Energy

NIES 2025 to Showcase Groundbreaking Deals and Visionary Leaders Shaping Nigeria’s Energy Future

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Africa News

Eni Grants PostGraduate Scholarship Awards to 30 Nigerians

Winners were selected among over 600 shortlisted applicants, based on their excellent academic standing and their performances at the Computer Based Testing (CBT) recently conducted. The Nigerian Agip Exploration (NAE) Limited has awarded scholarships to 30 Nigerians to pursue postgraduate…

Energy

President Tinubu Commends NNPCL Over The Re-Opening Of 125,000Bpd Warri Refinery

President Bola Tinubu has expressed his profound joy at the re-opening of the Warri Refining and Petrochemical Company by the Nigerian National Petroleum Company Limited, describing it as another remarkable achievement in 2024 that has strengthened Nigerians’ hope in his…

Energy

NNPCL Refutes Reports of Port Harcourt Refinery Shutdown – Affirms Ongoing Product Loading

The Nigerian National Petroleum Company Limited (NNPC Ltd) has refuted claims in some section of the media, alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down. In a statement released moments ago…

Energy

50MW MEPP Fully Operational in 2025 – Minister of State for Gas Lauds NNPCL for Achievement

The Honourable Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, has commended NNPC Ltd. for successfully implementing the vision of the President by delivering impactful initiatives like the Maiduguri Emergency Power Project (MEPP). The Minister made this…

Energy

NNPC Insists Port-Harcourt Refinery Fully Operational – Invites Skeptics for Facility Tour

The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), Mele Kyari has confidently assured Nigerians that the Old Port Harcourt Refinery is fully operational and actively involved in loading operations. Kyari made this statement during…

Energy

NNPC Is Committed to Local Content Development In Nigeria’s Energy Sector – Kyari

* Announces Restructuring of the NNPC Exploration and Production Ltd (NEPL) * Positions NNPC Engineering and Technical Company (NETCO) Ltd as a full-scale engineering company. The NNPC Ltd has reiterated its commitment to advancing local content development in Nigeria’s energy…

Energy

Ntia, NNPC Ltd’s New EVP Upstream, Charges Stakeholders on Corporate Governance, Transparency

The NNPC Ltd’s new Executive Vice President, Upstream, Mr. Udobong Ntia,has called on upstream stakeholders in the nation’s oil and gas industry to strengthen corporate governance, transparency and efficiency in their operations. Ntia, spoke during an Upstream Governance, Risk and…