The Dangote Petroleum Refinery significantly increased Nigeria’s crude oil imports in 2024 due to gaps in domestic supply from the Nigerian National Petroleum Company Limited (NNPCL).
Reports indicate that the refinery, with a capacity of 650,000 barrels per day (bpd), played a key role in raising Nigeria’s crude imports from the United States. In November 2024, the Dangote refinery received its first shipment of US West Texas Intermediate (WTI) crude, followed by multiple additional shipments.
These imports were necessitated by NNPCL’s inability to meet its crude supply commitments to the refinery. Industry experts attribute NNPCL’s supply shortfall to various crude-for-loan agreements that have tied up Nigeria’s oil production in financial obligations.
The Dangote refinery’s domestic crude retention also improved Nigeria’s local share of crude oil exports to 13% in 2024, up from just 2% in the previous year. However, this slightly reduced Nigeria’s crude exports to Europe, a key market.
Global trade patterns for crude oil shifted significantly last year due to geopolitical conflicts and sanctions, particularly on Russian oil. Amid these shifts, new refineries like Dangote’s have played a role in reshaping global crude flows.
While Nigeria remains a major oil exporter, the growing reliance on imported crude for local refining highlights persistent challenges in the country’s energy sector.
