In a move poised to reshape Nigeria’s oil industry, Dangote Refinery has announced plans to end all crude oil imports from the United States and other foreign suppliers by December, shifting entirely to domestic Nigerian crude. This milestone, if achieved, would mark a significant step toward energy self-sufficiency for Africa’s largest economy.
Devakumar Edwin, Vice President of Dangote Industries, revealed in an interview that the refinery is already making major strides toward this goal. In June, 53% of the refinery’s crude supply was sourced from Nigerian producers, with the remaining 47% coming from the US. Edwin expressed confidence that, as existing foreign supply contracts expire, the refinery will transition to relying exclusively on local crude before the end of 2025.
“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 percent to local crude,” Edwin stated, highlighting the company’s commitment to supporting Nigeria’s oil sector and reducing reliance on foreign imports1.
Since opening in 2023, Dangote Refinery has sourced crude from a diverse range of countries, including the US, Brazil, Angola, Ghana, and Equatorial Guinea. The shift toward Nigerian crude is expected to be supported by a significant increase in local oil production over the coming months.
To facilitate this transition, Dangote Refinery is scheduled to receive five cargoes from Nigeria’s state oil company in July, with a similar allocation planned for August. This steady supply of millions of barrels will help the refinery meet its ambitious target.
In a related development, Dangote Refinery recently announced a reduction in its ex-depot price of Premium Motor Spirit (PMS) to N820 per litre. This price cut is expected to have a positive impact on fuel costs across Nigeria, offering relief to consumers and businesses alike.
As the refinery accelerates its shift to local crude, industry observers are watching closely. Success could not only strengthen Nigeria’s energy independence but also stimulate local production and create new opportunities throughout the oil and gas value chain.