Nigeria, Africa’s leading producer of crude oil, has increased its imports of U.S. WTI crude due to the Dangote Oil Refinery’s growing appetite for the hydrocarbon, according to a Bloomberg report.
The refinery, which is Africa’s largest and one of the world’s most significant crude processing facilities, has an installed capacity of 650,000 barrels per day.
The refinery is owned by Aliko Dangote, Africa’s richest man, with an estimated net worth of about $28 billion.
According to Bloomberg’s ship-tracking data, the Dangote Refinery, located near Nigeria’s commercial capital, has purchased about a third of its crude from the United States, primarily the West Texas Intermediate (WTI) Midland grade.
This proportion has nearly doubled since 2024, the year the refinery began ramping up operations.
Analysts attribute the increased procurement of American crude to a combination of strategic and operational factors, according to Bloomberg.
The report indicated that OPEC member nations have found it difficult to economically scale up crude supply amid global competition.
However, this dynamic has allowed the 650,000-bpd refinery to acquire more stored U.S. crude, particularly WTI, as it moves closer to full operational capacity.
Another reason for Dangote’s preference is WTI’s higher yield of gasoline and refined products, the report added.
Additionally, parts of the Asian market for WTI crude contracted this year due to the ongoing U.S.-China trade tensions, increasing the availability of American crude for other regions, including West Africa.
The increased intake of U.S. crude also comes amid a decline in the availability of Nigerian crude.
Bloomberg research shows that U.S. crude is expected to make up a larger portion of Dangote’s imports in June compared to the domestic supply.
The Dangote refinery began producing fuel in 2024. Diesel and naphtha production commenced in January, followed by gasoline in September.
The use of U.S. oil aligns with the refinery’s increasing processing levels and the drop in available Nigerian crude for purchase.
Our correspondent further recalled that the refinery plans to reach its 650,000 barrels per day capacity in June this year.
However, low local crude supply has been limiting the refinery’s capacity to meet its production target amidst plans to ramp up daily production.
…To import N5m crude
Already, the refinery has lined up imports of at least five million barrels of U.S. West Texas Intermediate (WTI) crude oil for delivery in July, building on what may become a record month of WTI intake in June.
A recent Reuters report further indicated that the refinery awarded tenders for the purchase of around 161,000 barrels per day (bpd) of U.S. crude to be delivered in July.
This follows earlier deals for June cargoes amounting to roughly 300,000 bpd — the largest volume of WTI ever booked by the refinery in a single month.
Expert speaks on implication of imports
Oil and gas analyst and economist, Dr. Marcel Okeke in a chat with our correspondent said the continued imports of crude by Dangote when the naira for crude arrangement is in place is a problem for the economy.
“So that is a problem because what should be in place here is the naira for crude arrangement, crude supply in naira because if he is to be playing in dollar, the two cannot give the same result.
“So this would be causing problem for us. I think the naira for crude arrangement was renewed so that we can keep working with it.
“As long as crude oil is being imported, the prices they would be selling their end product would be higher than if it was paid in naira here. And you know the challenge with our foreign exchange market has always been demand far exceeding supply. So if they now use the small foreign exchange to be paying for importation of crude oil when we should have that locally, that is a problem, that would affect the foreign exchange and it would continue to contribute to the collapse of naira.
The exchange rate used to be N1,500 plus but as we speak it has crossed N1,600. So these are the things that induce the volatility of the foreign exchange and the volatility of the macro-economy generally.”
He tasked the government to be serious about expanding crude oil production, adding, “Government should do everything to encourage local and international oil companies to increase oil production.”
…Dangote to commit N900bn to infrastructure
President of the Dangote Group, Aliko Dangote, has vowed to commit additional N900bn in funding to infrastructure across Nigeria under the federal government tax credit scheme.
He also informed President Bola Tinubu during a high-profile tour of the Dangote Petroleum Refinery and Petrochemicals complex which also marked the official commissioning of the Deep Sea Port Access Road —that his group of companies paid N450 billion in taxes to the federal government’s coffers in 2024, thereby making it the highest tax-paying company in Nigeria.
With this significant tax payment, Dangote companies are contributing more in taxes than all the country’s banks combined.
Dangote also revealed that, despite paying N450 billion in taxes last year, the Group is committed to spending additional N900 billion on road infrastructure across Nigeria.
The President described the refinery as “a remarkable achievement,” calling it “a phenomenal project of our time” and “a major point of reference for Nigeria’s industrial and economic growth.”
The Deep-Sea Port Access Road, he said, is one of several roads built and being developed by the Dangote Group under the federal government’s tax credit scheme.
Dangote revealed that the Deep Sea Port Access Road is “One of eight major road projects totalling 500 kilometres, including two in Borno State that will eventually link Nigeria to both Chad and Cameroon.”
He praised President Tinubu’s leadership, describing him as a courageous leader whose administration has revived investor confidence in the private sector.
He also thanked the president for envisioning and implementing the Lekki Deep Sea Port project and assured him of the private sector’s support for expanding infrastructure nationwide.
Dangote however revealed that the road leading to the state-of-the-art Dangote Petroleum Refinery & Petrochemicals will be named Bola Ahmed Tinubu Road, in honour of President Bola Ahmed Tinubu.
“The Dangote refinery complex is, in many ways, your brainchild,” Dangote told the President. “Mr President, let me just say one thing — the main road leading into our refinery is now to be known as Bola Ahmed Tinubu Road.”
He emphasised that the Dangote Petroleum Refinery and Petrochemicals Complex stands as a symbol not only of visionary achievement but also of the immense potential realised when private enterprise aligns with purposeful government leadership.
“We remain steadfast in our commitment to contributing meaningfully to Nigeria’s economic transformation, supporting your administration’s efforts to build a self-reliant, globally competitive nation. We have remained Nigeria’s highest tax paying company. With continued collaboration and shared resolve, we are confident that the journey ahead will usher in even greater opportunities for our people and our country,” Dangote concluded.
The President described the refinery as “a remarkable achievement,” calling it “a phenomenal project of our time” and “a major point of reference for Nigeria’s industrial and economic growth.”
“Having inspected the Dangote Refinery, which is a great point of reference, a great phenomenon of our time, and a massive investment, I want to thank Aliko Dangote,” President Tinubu stated. “I am also pleased that the Deep Sea Port project, which I initiated during my tenure as Governor of Lagos State, has become a resounding success. It has significantly reduced logistics costs by eliminating the need for trans-shipment.”
The President also lauded the quality of infrastructure delivered under the Federal Government’s Tax Credit Scheme, specifically commending Dangote Industries Limited and its subcontractor, Hitech Construction Company Limited, for the delivery of the port access road.
‘Tinubu’s 4 wise men’
In a moment of tribute, President Tinubu described Dangote as the wisest mind in Nigeria’s economic landscape, citing his far-reaching investments and steadfast commitment to the country.
“I landed here with four wise men. I will say wise men,” Tinubu said. “Jim Ovia of reputable Zenith Bank, who has been acknowledged worldwide. Femi Otedola, my baby brother. Samad Rabiu of BUA. And I believe the wisest of them all, Alhaji Aliko Dangote, who is so daring in thinking, doing, and believing in his country.”
NGX eyes Dangote’s listing
Meanwhile, the Chairman of NGX Group, Alhaji Dr. Umaru Kwairanga, has explained that the exchange is working toward securing listings from the oil and gas sector, an initiative that could see major players like Dangote Petrochemicals and NNPC offer stakes to the public.
Alhaji Umaru made this announcement at a symposium held in Kano State, Nigeria, themed “Reimagining Nigeria’s Economy for a Prosperous Future: Where We Were, Where We Are, and Where We Should Be in the Next Decade.”
According to him, enabling these companies to list their shares would significantly boost the market capitalisation of the All-Share Index, further strengthening the domestic capital market.
He noted that a larger and more dynamic capital market would align with President Bola Tinubu’s ambitious goal of growing Nigeria’s GDP to one trillion dollars by 2030.
“When President Tinubu revealed his vision for Nigeria to grow its GDP to at least one trillion dollars by 2030, we keyed into that vision and are determined that the capital market will be at the centre of that drive to a trillion dollar economy and that our indices will grow in tandem with that vision,” he said.
The chairman also pointed out that the current market capitalisation is still below 20% of the nation’s GDP, in contrast to South Africa, where the Johannesburg Stock Exchange’s market cap exceeds the country’s GDP.
He also reflected on his achievements since taking office in October 2022, saying, “On that 5th day of October 2022, the All-Share Index was at 48,837 basis points and market capitalisation stood at N26.375 trillion. As at the end of May 2025, the ASI had climbed to 111,742 basis points and market capitalisation reached N70.463 trillion.”
He added that if bonds are included, the total capitalisation could be estimated at N121 trillion, driven by new and innovative measures aimed at boosting market efficiency and attracting a younger generation of investors.
He noted that the exchange is working closely with the Securities and Exchange Commission (SEC) to speed up transactions and enhance transparency in the capital market.
“We are focusing on key areas such as the dematerialisation of share certificates, resolving the backlog of unpaid dividends, and reducing the time it takes for primary issues to reach the market,” he said.
He stated that the launch of the NGX Invest app in 2024 was a major milestone. The app, he said, played a significant role in the first phase of the bank recapitalisation programme and helped drive broader market participation throughout the year.
He added that the capital market is actively engaging large institutional investors such as pension and mutual funds by offering tailored products like exchange-traded funds (ETFs), derivatives, and ethical investment options to meet their needs.He also reflected on his achievements since taking office in October 2022, saying, “On that 5th day of October 2022, the All-Share Index was at 48,837 basis points and market capitalisation stood at N26.375 trillion. As at the end of May 2025, the ASI had climbed to 111,742 basis points and market capitalisation reached N70.463 trillion.”
He added that if bonds are included, the total capitalisation could be estimated at N121 trillion, driven by new and innovative measures aimed at boosting market efficiency and attracting a younger generation of investors.
He noted that the exchange is working closely with the Securities and Exchange Commission (SEC) to speed up transactions and enhance transparency in the capital market.
“We are focusing on key areas such as the dematerialisation of share certificates, resolving the backlog of unpaid dividends, and reducing the time it takes for primary issues to reach the market,” he said.
He stated that the launch of the NGX Invest app in 2024 was a major milestone. The app, he said, played a significant role in the first phase of the bank recapitalisation programme and helped drive broader market participation throughout the year.
He added that the capital market is actively engaging large institutional investors such as pension and mutual funds by offering tailored products like exchange-traded funds (ETFs), derivatives, and ethical investment options to meet their needs.
