The Dangote Oil Refinery is expected to halt the importation of crude oil by December 2025, as it prepares to transition to sourcing 100% of its feedstock from Nigerian producers, according to a Bloomberg report.
The 650,000 barrels-per-day (bpd) refinery, located in Lagos, received approximately half of its crude supply in June from local oil producers, a trend that is likely to increase as existing contracts with foreign suppliers near expiration.
“We expect some of the long-term contracts will expire. Personally, and as a company, we expect that before the end of the year, we can transition 100 per cent to local crude,” said Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries.
Bloomberg cited data showing that in June, 53% of the refinery’s crude supply came from domestic sources, while 47% was imported, primarily from the United States. The refinery has also previously sourced crude from Brazil, Angola, Ghana, and Equatorial Guinea.
Despite the federal government’s Domestic Crude Supply Obligation (DCSO) policy, local producers have reportedly raised concerns, according to the Nigerian Upstream Petroleum Regulatory Commission’s 2024 report. Issues such as crude oil theft and frequent pipeline attacks in the Niger Delta have further complicated supply to domestic refineries.
Edwin noted, however, that “improved relations between the refinery, local oil traders and the government will result in a steady supply of Nigerian crude.” The refinery expects local crude volumes to increase significantly over the coming months.
The PUNCH had earlier reported that Aliko Dangote, the refinery’s founder, acknowledged the facility’s reliance on U.S. crude despite the government’s naira-for-crude policy, which aims to prioritise local supply.
In July and August, the refinery is scheduled to receive five crude cargoes each from the Nigerian National Petroleum Company Limited (NNPCL), with each shipment containing nearly one million barrels of oil.
Built at a cost of $20 billion, the refinery was designed to reverse Nigeria’s dependency on imported refined products by processing locally produced crude. Although still ramping up operations, the facility is currently processing 550,000 bpd and contributing to Nigeria’s emergence as a net exporter of petroleum products.
