Victor EzejaDangote Refinery expects to start processing only Nigerian crude oil by the end of 2025.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries, made this known in an interview with Bloomberg at the Lekki Free Trade Zone refinery complex near Lagos.
Join our WhatsApp ChannelEdwin stated that domestic crude producers have already begun increasing supply, accounting for nearly half of the refinery’s intake in June.
“We expect some of the long-term contracts with foreign suppliers will expire soon,” Edwin said. “Personally, and as a company, we expect that before the end of the year, we can transition 100% to local crude,” he stated.
Shortage of crude supply from domestic producers had forced the 650,000 barrels per day refinery to rely on imports from the US, Angola, Brazil, and Algeria, among others. The local producers had been unable to fulfill their Domestic Crude Supply Obligation (DCSO) as stipulated in the Petroleum Industry Act 2021.
This development will mark a shift from dependence on imports. It is also expected to further ease pressure on foreign exchange.
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Since its launch in 2024, the $20 dollar refinery has steadily increased output, transforming Nigeria into a net exporter of refined petroleum products for the first time in decades.
The facility’s decision to rely solely on Nigerian crude is consistent with Aliko Dangote’s long-held vision of local processing as a strategic tool for conserving foreign exchange and reducing reliance on expensive fuel imports.
According to industry data, Nigeria, Africa’s largest crude oil producer, has historically relied on imports to meet domestic fuel demand, depleting foreign reserves and exposing the economy to repeated supply shocks.
This trend is expected to be reversed by the Dangote refinery’s pivot, which will improve the nation’s balance of payments and give upstream operators a stable local market
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However, industry watchers observe that the quest to get 100 per cent of crude supply from local producers may come with a challenge of low production caused by crude oil theft, pipeline vandalism and insecurity around installations.
Edwin, who acknowledged these challenges, expressed optimism about the sector’s ability to stabilize as more producers fulfill their export obligations and direct their output towards domestic customers.
“As more local producers fulfil their export obligations and focus inward, we believe crude availability will improve,” he said.
“Our goal is to support the local market and bring stability and transparency to the oil sector,” he added.
Dangote refinery has stepped up its petroleum product export portfoilo since it started last year. It began exports to Asia last month with 90,000 metric tons of petrol, according to Mercuria, a global commodity trading company based in Switzerland.
This development will change the refinery’s export strateg.
The Asia route also indicates that the $20 billion refinery is expanding and has the potential to become a major global supplier of petrol.
