The Dangote Petroleum Refinery, Africa’s largest, is increasingly turning to U.S. crude imports to sustain operations amid a persistent shortage of locally available oil, the company’s chairman, Aliko Dangote, confirmed this week.
Speaking at an industry forum in Abuja, Dangote criticized the continued challenges in securing adequate domestic crude supply, despite Nigeria being Africa’s top oil producer. He emphasized that the situation is forcing his $20 billion refinery to rely on foreign sources, particularly from the United States, to meet processing targets.
“We are not getting enough crude from local producers,” Dangote said. “This shouldn’t be the case in a country that exports over 1.3 million barrels of crude daily.”
The Dangote Refinery, which began production earlier this year with a capacity of 650,000 barrels per day, was initially expected to reduce Nigeria’s dependence on imported refined petroleum products. However, the reliance on U.S. crude has raised concerns about cost implications and energy security.
Industry analysts suggest that part of the problem lies in existing long-term export contracts between Nigerian oil producers and international buyers, as well as inefficiencies in local crude allocation frameworks.
Data from international trade sources shows that U.S. crude exports to Nigeria have surged over the last quarter, with several Very Large Crude Carriers (VLCCs) docking at the Lekki Free Trade Zone.
As Nigeria struggles with refining capacity and energy independence, Dangote’s comments have reignited debate over the need for policy reforms to prioritize local supply to domestic refineries.
“The government must act swiftly to ensure that domestic refining becomes a national priority, not an afterthought,” Dangote urged.
About The Author
