Africa’s largest oil refinery, owned by Dangote Industries Ltd., plans to fully switch to processing only Nigerian crude before the close of 2025.
The company currently relies partly on imported oil but aims to replace this with local supplies in a move expected to transform Nigeria’s refining sector and save foreign exchange.
This was disclosed by Devakumar Edwin, Vice President at Dangote Industries, who oversees the 650,000 barrel-per-day plant located outside Lagos.
Edwin mentioned that domestic producers are set to supply more crude as some of their long term contracts with foreign buyers expire.
“Personally, and as a company, we expect that before the end of the year we can transition 100% to local crude,” he noted in an interview at the refinery site.
The refinery, built by Nigerian billionaire Aliko Dangote, was designed to help Africa’s top oil producer reduce reliance on imported petroleum products that cost the nation billions annually and expose it to price volatility.
According to Edwin, the Dangote plant sourced 53% of its crude in June from Nigerian producers, while 47% came from the United States.
The gradual move to local crude comes after the refinery initially struggled to meet its needs with domestic supply, leading to imports from Brazil, Angola, Ghana and Equatorial Guinea.
Bloomberg data showed the refinery is currently processing about 550,000 barrels of crude daily.
Edwin added that improved collaboration between the company, local traders and government agencies will help ensure a steady flow of Nigerian crude to the facility.
Meanwhile, Dangote is scheduled to lift five cargoes from Nigeria’s state oil company in July, with the same volume planned for August.
Each cargo is estimated to contain nearly one million barrels of crude.
Nigeria’s oil sector has been hampered by issues such as crude theft, pipeline vandalism and declining investment from major international companies.
Many onshore and shallow water fields once operated by oil majors have been transferred to local firms, often with fewer financial and technical resources.
Despite these challenges, Dangote Industries believes the refinery’s focus on local crude will support Nigeria’s economic stability.
Edwin stated that the long term plan is not only to meet domestic fuel demand but also to boost exports of refined products.
