Dangote Refinery Increases Crude Oil Imports from US, Cites Reasons

Dangote Petroleum Refinery, Africa's largest oil processing facility situated near Lagos, has significantly increased its imports of crude oil from the United States in 2025. This move is attributed to the refinery ramping up its processing levels and encountering difficulties in sourcing sufficient crude oil locally within Nigeria. Data compiled from ship tracking records indicates that approximately one-third of the crude processed by Dangote Refinery this year has been sourced from the US, with a particular preference for West Texas Intermediate (WTI) Midland grade.
The refinery's growing reliance on imported crude underscores Nigeria's persistent challenges in its domestic oil production sector. Despite various governmental promises and policies like \"naira for crude,\" the nation continues to struggle to meet its output targets. 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. This figure is considerably below the 2 mbpd target set in the federal budget. While this represents a modest increase from the 1.435 mbpd recorded in the fourth quarter of 2024, it highlights the ongoing difficulties.
A more detailed breakdown of monthly figures reveals fluctuations: production was at 1.465 mbpd in February 2025, dipped to 1.401 mbpd in March, and then rose to 1.486 mbpd in April. The OPEC report attributed these persistent challenges to several factors, including chronic underinvestment in the sector, widespread pipeline vandalism, and frequent operational disruptions. Despite these domestic production shortfalls, Nigeria has maintained its position as Africa’s leading crude oil exporter, as reported by BusinessDay.
A spokesman for Dangote confirmed that the increased utilization of US oil is a direct consequence of the refinery's rising processing activities and a reduction in the availability of Nigerian crude for purchase. The decision to import U.S. crude also aligns with favorable market conditions. These include weaker demand for WTI Midland in Asia, partly due to Chinese tariffs on U.S. crude, and an ample supply of competing crude grades such as Abu Dhabi's Murban crude. Consequently, Dangote Refinery is scheduled 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.
In a related development within Nigeria's downstream sector, fuel depot owners have reportedly reduced the price of petrol to levels below those offered by Dangote Refinery. This has intensified competition in the market. Furthermore, the Nigerian National Petroleum Company Limited (NNPC) announced a new pump price of N870 at its filling stations in Lagos, which is also below the rates offered by Dangote's retail partners. Reports from various depots across Lagos, Warri, and Delta indicate that operators such as AITEO, AIPEC, A.A. Rano, and NIPCO were offering petrol at N826 per litre as of Wednesday, June 3.