Dangote Refinery to Process 100% Nigerian Crude by Year-End, Boosting Local Oil Supply
written Story: | By Okafor Joseph
Nigeria’s Dangote Refinery Targets 100% Local Crude Supply Before 2026
The Dangote Refinery, Africa’s largest oil refinery located just outside Lagos, aims to run entirely on locally produced Nigerian crude oil by the end of this year — a major milestone for the country’s energy independence and downstream oil sector.
According to Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries, the 650,000 barrels-per-day plant — owned by Africa’s richest man, Aliko Dangote — received about half its crude feedstock from domestic producers in June. This share is expected to grow steadily as existing long-term foreign supply contracts expire.
“We expect some of these contracts to run out soon,” Edwin said during an interview at the refinery site. “Our goal is to switch fully to local crude before the year ends.”
Read also: Dangote Refinery Hits Record US Crude Imports Amid Local Shortages
Aliko Dangote initially championed the multi-billion-dollar refinery as the answer to Nigeria’s costly dependence on refined fuel imports. Despite being Africa’s top crude producer, Nigeria has long exported crude oil to Europe and Asia only to re-import it as expensive refined products — a practice that drains foreign reserves and has been linked to decades of corruption.
Since its commissioning, the Dangote Refinery has begun to reverse that trend. Nigeria is now a net exporter of refined petroleum products, though ramping up production to full capacity has required the facility to source crude from international markets. In addition to domestic supply, the plant has purchased oil from countries like the US, Brazil, Angola, Ghana, and Equatorial Guinea.
OPEC member Nigeria has faced unique production challenges in recent years. Major international oil companies have exited onshore and shallow water fields, leaving operations to local firms that often lack sufficient capacity. Persistent issues such as crude oil theft, pipeline vandalism in the Niger Delta, and legacy export contracts have further tightened domestic supply.
However, Edwin said relations among the refinery, local oil traders, and the Nigerian government have improved significantly — boosting confidence that local producers can meet the refinery’s needs going forward.
In June, the refinery sourced 53% of its feedstock from Nigerian suppliers and 47% from US shipments, according to Bloomberg data. The facility currently processes around 550,000 barrels of crude per day and plans to reach its nameplate capacity soon.
Dangote has secured five crude cargoes from the Nigerian National Petroleum Company (NNPC) for July and the same number for August — each shipment carrying nearly one million barrels.
According to the Bloomberg Billionaires Index, Dangote’s total assets are now valued at $27.7 billion, reinforcing his status as Africa’s wealthiest individual and a key player in Nigeria’s push to become self-sufficient in refined fuel production.
