The Dangote Refinery, Africa’s largest oil-processing facility, now relies heavily on U.S. crude oil imports, particularly the WTI Midland grade, as it expands operations in Lagos. Despite Nigeria’s status as Africa’s top oil producer, the country’s supply shortfalls have forced the 650,000 barrels-per-day refinery to source more barrels from abroad.
U.S. Crude Now Dominates Feedstock at Dangote Facility
New tracking data compiled by Bloomberg shows that U.S. oil accounts for around one-third of the refinery’s crude intake so far this year. In June, that share will rise further, surpassing volumes from Nigerian suppliers.
Industry experts say the shift is not just due to local supply constraints but also technical advantages. WTI crude yields higher volumes of reformate and blends better into gasoline, making it ideal for the refinery’s high-performance targets.
“WTI offers better reformate yields and blending potential,” said Randy Hurburun, a senior analyst at Energy Aspects.
Market forces also play a role. The ongoing U.S.-China trade war has slowed American oil exports to Asia, freeing up more barrels for Africa. As a result, Nigerian refiners like Dangote have gained access to high-quality American crude at competitive rates.
Nigeria Struggles While Dangote Scales Up
A Dangote Group spokesperson confirmed that local crude availability remains limited even as the refinery scales operations. The plant began diesel and naphtha output in early 2024 and added petrol production by September of the same year.
The refinery’s full processing capacity of 650,000 barrels per day makes it the largest in Africa and among the biggest globally. Built by Nigerian billionaire Aliko Dangote, the complex aims to meet 100% of Nigeria’s refined fuel needs—including petrol, diesel, jet fuel, and LPG. It also plans to export surplus products.
Despite being an OPEC member, Nigeria continues to fall short of crude output expectations due to aging infrastructure, insecurity in the Niger Delta, and underinvestment. This gap has forced even local facilities like Dangote’s to turn abroad for feedstock.
Dangote’s growing reliance on U.S. crude highlights both the global nature of oil markets and the urgent need for Nigeria to revamp its upstream sector.