Alhaji Aliko Dangote, President and Chief Executive of Dangote Group, has reiterated that his $20bn Dangote Petroleum Refinery was built with the primary aim of refining Nigerian crude oil and adding value within the country. In a statement released by the refinery on Thursday, Dangote addressed speculation about the facility’s operations, affirming that while the refinery has processed crude from Europe, the United States, and other nations, its focus remains firmly on Nigerian oil.
As Africa’s wealthiest individual, Dangote acknowledged ongoing domestic crude supply challenges but assured that these issues were being resolved by the relevant stakeholders. The statement highlighted the refinery’s impact on global crude flows, noting that several Nigerian cargoes have remained in-country, while U.S. WTI Midland crude—a similar light, sweet grade—has been imported to supplement local supply.
“The refinery was built to use Nigerian crude and add value to it within Nigeria. Why should we deviate from that focus?” Dangote questioned, adding that while supply issues are “getting resolved,” the refinery remains open to all opportunities to supplement its operations.
The refinery’s feedstock strategy has already affected markets, particularly in Europe, where Nigerian crude is a key source for light, sweet grades. The statement noted that U.S. WTI Midland crude has emerged as a favoured supplement, accounting for 30% of the refinery’s crude deliveries through 18 cargoes.
Despite this diversification, Dangote emphasized that the refinery would continue to prioritise Nigerian crude, while also considering other global sources such as Libyan, Angolan, and Brazilian grades. “Dangote refinery is designed to process a range of light and medium grades of crude oil, including Nigerian grades,” added Rasool Barouni, Associate Director and head of Refining at S&P Global Commodity Insights.
Nigeria, as sub-Saharan Africa’s largest oil producer, has historically exported all of its crude due to a lack of refining capacity, importing gasoline, diesel, and jet fuel for domestic use. The commissioning of the Dangote refinery, however, marks a significant shift, with the facility poised to impact international crude markets, particularly in Europe.
The Organisation of Petroleum Exporting Countries (OPEC) has already acknowledged the refinery’s potential to disrupt Europe’s oil industry, particularly in the diesel and jet fuel markets. In its June 2024 Oil Market Report, OPEC listed the Dangote refinery as a key player in reshaping global oil flows, a development that experts believe could positively impact Nigeria’s economy.
In response to recent media reports, the Dangote refinery clarified its position on crude supply. “Our attention has been drawn to media reports alleging that the Dangote refinery has backtracked by acknowledging that NNPC supplied about 60% of the 50 million barrels we lifted,” the refinery stated. The clarification emphasized that their concern lies with the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) enforcement of domestic crude supply obligations, rather than with the Nigerian National Petroleum Corporation (NNPC).
“For September, our requirement is 15 cargoes, of which NNPC allocated six. Despite appealing to NUPRC, we’ve been unable to secure the remaining cargoes,” the statement explained, adding that the refinery often has to purchase Nigerian crude from international traders at a premium. The refinery called on NUPRC to fully enforce the domestic crude supply obligation as mandated by the Petroleum Industry Act (PIA).
