Aliko Dangote’s refinery relies on U.S. crude imports amid Nigeria supply drop

Key Points

• Dangote refinery ramps up U.S. WTI crude imports as Nigeria battles domestic oil supply shortfalls and infrastructure challenges. 
• Africa’s largest refinery shifts global oil trade flows, sourcing nearly one-third of crude from the U.S. amid falling Asian demand. 
• Refinery hits 500,000 bpd, eyes 650,000 bpd by mid-2025, driving Nigeria’s fuel independence and boosting export logistics.

The Dangote Petroleum Refinery, Africa’s largest and owned by the continent’s richest man, Aliko Dangote, is ramping up imports of U.S. West Texas Intermediate (WTI) crude as Nigeria’s domestic oil supply tightens. This underscores evolving global trade dynamics and Nigeria’s urgent need to stabilize fuel production. 

The Refinery, with a nameplate capacity of 650,000 barrels per day (bpd), now sources nearly one-third of its crude from the United States, nearly doubling U.S. imports since early 2024. This mega refinery has effectively ended Nigeria’s long-standing status as Africa’s largest fuel importer by ramping up local refining output.

Strategic recalibration amid Nigerian crude decline

The pivot toward U.S. crude reflects multiple pressures: dwindling Nigerian oil supply caused by underinvestment, pipeline theft, and aging infrastructure; the operational advantage of WTI’s higher gasoline yields; and shifting global markets.

Lower demand for U.S. crude in Asia, amid ongoing U.S.-China trade tensions, has freed up more WTI barrels for Atlantic Basin buyers like Dangote.  Industry sources highlight Vitol Group as the key supplier, shipping an estimated 14 million barrels of WTI Midland—now part of the Brent benchmark basket—to the refinery this summer.

Refinery growth, infrastructure, and national impact

Since beginning phased operations in 2024, Dangote’s refinery has expanded production from diesel and naphtha to gasoline. Sourcing flexibility remains critical as the refinery optimizes output and manages local crude volatility. 

The refinery also holds strategic national significance. Dangote recently honored Nigerian President Bola Tinubu by naming the main access road after him, acknowledging his role in the project’s completion. This access route links the refinery and fertilizer plant to major economic corridors extending into West Africa, facilitating export and logistics.

Global oil market context and Dangote’s vision

The refinery’s growing U.S. crude intake coincides with a $1-per-barrel rebound in WTI prices to $64, buoyed by a robust U.S. jobs report and renewed U.S.-China trade talks. Meanwhile, OPEC production edged up in May, led by Libya’s 13-year output peak. 

Since launching in Ibeju-Lekki, Lagos, the refinery hit 500,000 bpd by January 2025, aiming for full 650,000 bpd capacity by mid-2025.  It has also diversified crude sources with shipments from Saudi Arabia and exported 2 million barrels of jet fuel to the U.S. in March. 

With a net worth of $27.8 billion, Dangote aims to grow group revenues to $30 billion by 2026 through expanding refined fuel, petrochemical, and fertilizer exports—cementing the refinery as a cornerstone of Africa’s energy independence. 

Femi Otedola recently dubbed the refinery the “eighth wonder,” echoing President Tinubu’s praise of the $20 billion project as a “great phenomenon.”