Nigeria, despite holding the title of Africa’s largest oil producer, finds itself in an ongoing struggle to consistently deliver crude feedstock to its flagship Dangote Petroleum Refinery, which is poised to refine up to 650,000 barrels daily. This disparity has compelled the refinery to look beyond its borders, seeking imports to maintain its operations. Why does this discrepancy exist in a nation rich in natural resources? It’s a question that can foster deeper discussions about the infrastructure, politics, and economics at play.
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Recently, a significant visit took place at the Dangote Refinery. Mrs. Maureen Ogbonna, the Coordinator of the Technical Committee for the One-Stop Shop for the Sale of Crude and Refined Products in Naira initiative, toured the facility. Her sentiments were clear as she described the refinery as “a breath of fresh air” with the potential to transform nearly every sector of Nigeria’s economy. As a member of the Technical Committee, Ogbonna acknowledged the profound implications such advancements could have on local energy security and economic sustainability.
Aliko Dangote himself praised the committee’s efforts to back President Bola Tinubu’s naira-for-crude initiative. He emphasized that the policy isn’t just a regulatory measure but a dynamic strategy that has yielded tangible benefits for the Nigerian economy. “This policy has been instrumental in lowering petroleum product prices and reducing our dependence on the U.S. dollar,” he remarked, observing the subtle yet important stabilizing effect on the local currency.
Yet, another side to this burgeoning narrative lies in the stark reality of ongoing shortages of domestic crude oil. Dangote noted that the refinery has increasingly relied on U.S. imports in recent months, a strategy born out of necessity rather than preference. This dependency not only underscores Nigeria’s current supply challenges but also opens up discussions about future strategies for self-sufficiency and resilience in energy production.
The reliance on U.S. suppliers has emerged as a crucial lifeline for the refinery, an indication of Nigeria’s gaps in supply as well as a sign of the growing interdependence of international markets with local investments. This brings to light another question: Can Nigeria leverage its resources effectively to turn this situation around?
Dangote’s Dependence on Foreign Crude
According to the National Bureau of Statistics (NBS), Nigeria disbursed a staggering ₦1.19 trillion on crude oil imports in the first quarter of 2025 alone, making crude oil the third most imported commodity in the country. Ironically, this occurs while Nigeria retains its position as Africa’s leading oil producer. This stark contradiction raises eyebrows: How can a nation rich in resources find itself in such a situation?
This contradiction highlights the significant supply gaps faced by local refineries, particularly the Dangote Petroleum Refinery. Projections indicate that the refinery will need to import approximately 17.65 million barrels of crude oil between April and July 2025. Just over the past two months, the refinery has already received about 3.65 million barrels, a clear signal of its ongoing reliance on both domestic allocations and the Federal Government’s naira-for-crude policy.
As of March 2025, reports indicate that the refinery received over three million barrels of U.S. crude in a single month, as per Bloomberg. This data highlights a significant import trajectory, paving the way for a deeper exploration of Nigeria’s energy landscape.
Expanding its sources, the Dangote Refinery is also diversifying its imports by bringing in crude from international markets such as Angola’s Pazflor grade and Algeria’s Saharan Blend, both sourced through Glencore Plc. This diversification strategy serves as a reminder of the intense competition present in global energy markets and the necessity for local entities to remain agile.
An analysis published by Punch further reveals that the refinery’s shift from reliance on Nigerian crude in December 2024 reflects a significant trend. Over a span of seven months, the refinery imported a staggering 27.1 million barrels from the United States, contrasting sharply with the 46.2 million barrels obtained from the Nigerian government within the same timeframe. This shift begs the question: what measures can be taken to revitalize domestic production and shorten this widening gap?
As we navigate these complex dynamics, the responsibilities of policymakers, industry leaders, and even consumers come into sharper focus. Will Nigeria seize this moment, turning apparent weaknesses into opportunities, or will it continue to grapple with its paradoxes? The future of Nigeria’s energy sector hangs in a delicate balance, and only time will tell if it will emerge stronger from this crucible.
In closing, the journey of the Dangote Refinery serves not just as a case study but as a powerful narrative about resilience, adaptation, and the critical importance of collaboration at all levels of the economy.
Edited By Ali Musa
Axadle Times International–Monitoring.
