Nigeria’s $20 billion Dangote Refinery has, for the first time, sourced crude oil from Ghana, signaling a deliberate diversification strategy even as concerns mount over its operational reliability.
Global market intelligence firm Kpler reported that the refinery is currently operating at approximately 450,000 barrels per day (kbd), roughly 70% of its nameplate capacity. This marks an increase from 400 kbd (60%) in the first quarter but still falls short of expectations for Africa’s largest refinery.
Diversification Strategy
The facility has recently incorporated Ghana’s Sankofa crude, a medium-sweet grade with an API of 29 and a sulphur content of 0.3%, into its feedstock. In August, Dangote received five Nigerian Suezmaxes, two U.S. Very Large Crude Carriers, and one Ghanaian cargo.
Kpler also noted the return of Brass River crude, absent from Dangote’s slate for nearly a year, underscoring the company’s growing push for supply flexibility beyond Nigerian and American light sweet grades.
RFCC Concerns and Denials
While Kpler reported lower crude intake in August—dropping from July’s record 570 kbd to 450 kbd due to ongoing maintenance at the refinery’s Residue Fluid Catalytic Cracking Unit (RFCCU)—Dangote Industries dismissed claims of operational challenges.
Group Chief Branding and Communications Officer Anthony Chiejina rejected media reports, calling them “untrue” and “speculative.” He insisted that the refinery has “no issue” and operations remain on track, though he did not confirm the Ghana crude purchase.
Earlier, an executive told S&P Global Platts that work on the RFCC had been completed and that the unit was expected to resume normal output by August 24. However, sources maintained that a full restart may not happen until early September.
The temporary outage prompted a surge in gasoline imports into West Africa, with nearly one million tonnes shipped from Northwest Europe and the Mediterranean over the past 30 days. About 65% of that volume landed in Lomé, Togo, underlining the region’s dependence on external supply.
Regional Competition Looms
Meanwhile, Cameroon’s Sonara announced plans to restart its long-idle Limbe Refinery by 2027, eight years after a fire halted operations. If revived, the facility could intensify competition for Dangote in the West and Central African markets.
Despite the hurdles, Dangote’s crude diversification and gradual output ramp-up signal that the refinery remains a key player in shaping West Africa’s downstream oil landscape.