Dangote Refinery, the largest in Africa, is on track to process only Nigerian crude oil by the end of 2025, per Bloomberg. This milestone would sharply reduce the country’s dependence on imported petroleum products. This shift, according to Dangote Industries Ltd., marks a pivotal step toward energy self-sufficiency for Nigeria, the continent’s top oil producer.
The $19 billion facility, with a capacity of 650,000 barrels per day (bpd), has already begun to reshape Nigeria’s fuel landscape, transitioning the country from a net importer to a net exporter of refined petroleum products. As of June, the refinery sourced 53% of its crude from local suppliers and 47% from international markets, including the U.S., according to Bloomberg data.
Devakumar Edwin, vice president at Dangote Industries and overseer of the refinery project, confirmed that the company anticipates securing 100% of its crude needs from Nigerian producers before the end of the year. “We expect some of the long-term contracts will expire,” Edwin said in an interview, adding, “Personally, and as a company, we expect that before the end of the year, we can transition 100% to local crude.”
The move aligns with Aliko Dangote’s long-stated goal of eliminating the inefficiencies and corruption tied to exporting Nigerian crude to Europe only to import refined fuel at a premium. The refinery, situated just outside Lagos, is currently processing 550,000 bpd and gradually increasing its output as more domestic crude becomes available.
However, achieving this target depends on ramping up local crude availability significantly over the coming months. Nigeria’s oil sector has struggled with production due to theft, pipeline attacks in the Niger Delta, and the exit of international oil companies from onshore and shallow water fields, assets now operated by less-resourced local firms.
Dangote has had to turn to global suppliers such as Brazil, Angola, Ghana, Equatorial Guinea, and the U.S. to meet its early supply needs. But improved collaboration with Nigeria’s local traders, upstream producers, and government regulators is expected to stabilize domestic crude flows.
In July and August, the refinery is scheduled to receive five cargoes each month from the Nigerian National Petroleum Company (NNPC), with each shipment holding close to one million barrels. These allocations are key to meeting the refinery’s operational requirements and transitioning away from foreign oil dependence.
The refinery’s success is not just a win for Dangote, it also marks a strategic inflection point in Nigeria’s long battle to localize its oil refining industry, reduce foreign exchange outflows, and reclaim value lost to decades of fuel importation.
With Africa’s oil and gas industry under pressure from global energy transitions and local inefficiencies, Dangote Refinery’s domestic sourcing strategy could emerge as a model for sustainable energy independence across the continent. If the refinery succeeds in reaching full reliance on Nigerian crude, it will represent a rare triumph of industrial ambition and national policy alignment.
