From Adanna Nnamani, Abuja

This is according to a new report by Bloomberg, which revealed that in June, the refinery received about half of its crude from local producers who are expected to increase supply as their foreign obligations expire.

The report quoted Vice President of Dangote Industries, Devakumar Edwin saying, “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% to local crude.

Edwin added, “That still requires a significant increase of local oil over the coming monthsThe plant is currently processing 550,000 barrels of crude a day.”

The Dangote Refinery was originally envisioned to help Nigeria, Africa’s top oil producer, reduce dependency on foreign refineries by processing its crude domestically.

The country has for decades exported crude to Europe and re-imported refined petroleum products at high cost, a practice long criticised for being inefficient and prone to corruption.

Although the refinery is yet to reach full capacity, its gradual ramp-up has already made Nigeria a net exporter of petroleum products.

However, early operations depended heavily on foreign crude as domestic traders struggled to meet supply demands.

Since opening, the refinery has sourced crude from countries including Brazil, Angola, Ghana and Equatorial Guinea. Edwin noted that better cooperation between the refinery, local oil traders and the government is expected to secure a steady supply of Nigerian crude. “Improved sourcing from within Nigeria is crucial, especially as the oil sector has faced challenges.

A wave of exits by oil majors from onshore and shallow water fields has handed control to local firms with fewer resources. Additionally, persistent issues such as crude theft and pipeline vandalism in the Niger Delta have reduced the amount of crude available for domestic use.

In June, the refinery sourced 53% of its crude supply from domestic producers and 47% from the US.

Dangote was scheduled to take five cargoes from Nigeria’s state oil company in July, with another five due in August. Each cargo contains nearly one million barrels of crude.