Dangote Refinery Targets 100% Nigerian Crude by Year-End in Energy Sector Milestone
Dangote Industries Limited has announced plans to fully switch its massive 650,000 barrels-per-day refinery to use only Nigerian crude oil by the end of 2025. The shift marks a critical milestone in Nigeria’s efforts to become energy self-sufficient. Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries, disclosed that local producers already supplied about half of the refinery’s crude needs as of June, with foreign supply contracts expected to phase out soon.
This transition aligns with Aliko Dangote’s long-held goal of refining Nigerian oil domestically to reduce dependency on imports and curb foreign exchange losses. Since launching operations, the refinery has increased output steadily and made Nigeria a net exporter of refined petroleum products—a historic shift for the country. Initially, due to inadequate local supply, the plant had to import crude, particularly from the U.S.
Despite the refinery’s progress, local crude supply faces obstacles. The exit of international oil companies (IOCs) from onshore operations and security issues like crude theft and pipeline vandalism in the Niger Delta have reduced output capacity. However, Edwin remains optimistic, expressing confidence that increased focus by local producers on domestic markets will help stabilize supply chains.
The move to 100% local crude is expected to transform Nigeria’s oil economy. It would reduce import dependence, improve foreign reserves, and enhance energy security. Additionally, it presents a reliable market for local oil producers, which could spur new investments in upstream infrastructure. Industry experts hail the refinery as a strategic asset with the power to change Nigeria’s energy narrative.
This development comes amid government reforms to attract investment in oil and gas, particularly under the Petroleum Industry Act (PIA) of 2021. While implementation has been uneven, analysts suggest that Dangote’s progress could serve as a benchmark for regulatory success. Experts urge the government to bolster production security and regulatory clarity to ensure sustained local crude supply.
Source: Business day