The Dangote Petroleum Refinery is set to begin importing crude oil feedstock to meet its growing capacity needs, citing insufficient supply from the Nigerian National Petroleum Company Limited (NNPCL).
A company official, speaking anonymously, revealed that the refinery has ramped up production to 500,000 barrels per day (bpd) and aims to hit 650,000 bpd by June 2025. The official noted that the NNPCL currently supplies approximately 350,000 bpd from the 450,000 bpd allocated for local consumption, leaving a significant supply gap.
“At 500,000 bpd, we have no choice but to source crude oil wherever it is available. By midyear, when we reach 650,000 bpd, the need becomes even more critical,” the source explained.
Last year, President Bola Tinubu approved a Naira-for-crude sales policy to secure 450,000 bpd for domestic refineries, including Dangote Refinery. However, the supply has primarily focused on supporting fuel production at the facility.
Efforts to revive Nigeria’s refining capacity have also seen the rehabilitation of the Port Harcourt Refinery in November 2024 and the Warri Refinery in December 2024. These developments are part of a broader strategy to distribute crude feedstock among domestic refineries.
The Nigerian Upstream Petroleum Regulatory Commission estimates that 123.5 million barrels of crude oil will be required by eight refineries in the first half of 2025.
Devakumar Edwin, Vice President of Dangote Industries, highlighted the implications of importing crude, stating, “Sourcing crude internationally means higher stockpiles will be necessary to sustain operations.”
The Dangote Refinery, Africa’s largest, continues to play a pivotal role in Nigeria’s quest for energy independence, even as it navigates supply challenges.
