The Dangote Petroleum Refinery has taken a significant step in its crude sourcing strategy by purchasing its first-ever cargoes from the United Arab Emirates, signalling a broader diversification of feedstock as Nigeria's domestic crude supply continues to face constraints.
According to S&P Global Commodity Insights, the 700,000-barrels-per-day refinery has secured two cargoes of UAE Murban crude, marking the first time the facility will process crude sourced from the Middle East since it commenced operations. Until now, the refinery had relied largely on Nigerian crude, supplemented by grades imported from other African producers and the United States.
The development comes as crude exports from the Gulf gradually normalise following an interim peace agreement between the United States and Iran, which restored confidence in shipping through the Strait of Hormuz after months of conflict and supply disruptions. The reopening of the strategic waterway has once again made Middle Eastern crude more accessible to global refiners.
The move also reflects Dangote Refinery's efforts to secure a more reliable and flexible supply of feedstock as it ramps up operations. Although the refinery has an agreement with the Nigerian National Petroleum Company Limited (NNPCL) to receive between 13 and 15 cargoes of Nigerian crude monthly under the naira-for-crude arrangement, domestic supply has remained inconsistent due to production shortfalls and operational challenges affecting export terminals.
Those constraints have repeatedly forced the refinery to look beyond Nigeria's borders to maintain optimal production rates and ensure uninterrupted refining operations.
Beyond addressing immediate supply needs, the UAE purchases align with Dangote Refinery's long-term strategy of expanding both capacity and crude flexibility. The company plans to increase refining capacity from 700,000 barrels per day to 1.4 million barrels per day by the end of 2028, a scale that would enable it to process almost 80 per cent of Nigeria's current daily crude production.
Chief Executive Officer of Dangote Refinery, David Bird, had earlier disclosed that the company intends to increase the proportion of heavier crude grades in its feedstock mix as the refinery expands.
"We definitely want to heavy up the barrel," Bird said, adding that the refinery plans to become an active participant in crude blending and could process up to 30 per cent Middle Eastern crude on each refining train after the planned expansion.
S&P Global data shows that Nigerian crude accounted for about 70 per cent of the refinery's imports in 2025, while approximately 24 per cent came from the United States. The addition of UAE crude further broadens the refinery's procurement portfolio and reinforces its transition towards operating as a fully merchant refinery capable of sourcing the most commercially attractive crude grades from across the global market.
Industry observers say the latest procurement demonstrates a shift in strategy rather than a departure from Nigerian crude. By widening its supply options, the refinery is positioning itself to maintain high utilisation rates, improve operational resilience and support growing production of petrol, diesel, aviation fuel and other refined products for both the Nigerian market and export destinations.