Aliko Dangote has pointed to a shortfall in domestic crude oil supply as the main reason his multi-billion-dollar refinery continues to rely heavily on imports from the United States. The Dangote Refinery, with a capacity of 650,000 barrels per day, is set to receive around five million barrels of U.S. West Texas Intermediate (WTI) crude in July, after record-high imports in June. This dependency began in March 2024 due to inadequate allocations from the Nigerian National Petroleum Company (NNPC).
Despite Nigeria’s status as Africa’s top oil producer, the country struggles to meet the Domestic Crude Supply Obligation, with much of its output committed to export contracts. Dangote officials report that crude volumes supplied locally are far below refinery requirements, forcing them to pay premium prices for international oil. The continued reliance on foreign crude undermines efforts to stabilize domestic fuel prices and fully optimize the refinery’s potential.
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