Dangote Refinery Sourced 60% of Crude Locally as Nigerian Feedstock Hits 116m Barrels
The Dangote Petroleum Refinery sourced about 60 per cent of its crude feedstock from Nigeria in the 12 months ended June 30, 2026, highlighting the growing role of domestic crude in supporting the operations of Africa’s largest single-train refinery. According to the refinery’s initial public offering (IPO) prospectus, the company processed approximately 26.4 million metric tonnes of crude during the period, equivalent to about 193.5 million barrels using a standard conversion factor of 7.33 barrels per metric tonne.
Based on the 60 per cent local sourcing figure, the refinery is estimated to have obtained about 116 million barrels of crude from Nigerian sources between July 2025 and June 2026. The supplies came through term arrangements with the Nigerian National Petroleum Company Limited (NNPC), including the Federal Government’s crude-for-naira programme, as well as spot purchases from international oil companies and domestic producers. However, the prospectus did not disclose the exact volume supplied by each category of domestic source.
The remaining 40 per cent of the refinery’s crude requirements was sourced internationally through spot market purchases and other supply arrangements with overseas counterparties. Dangote Refinery said this approach gives it flexibility to select from different crude grades based on market conditions and refinery economics. As of June 30, 2026, the refinery had processed 36 different crude grades from Africa, South America, the United States and the Middle East.
The refinery also explained that its crude procurement decisions are guided by the expected profitability of processing each crude grade. Its proprietary planning model assesses factors including product yields, refinery operating conditions and prevailing refined-product prices. This means some crude grades may be purchased at a premium when their characteristics are expected to deliver stronger refining margins, while others may be sourced at discounts.
Despite its diversified supply network, Dangote Refinery warned that crude availability remains a key operational risk. The company said disruptions at upstream facilities, supplier failures, security incidents and restrictions in oil-producing countries could affect crude deliveries. It also noted that prolonged shortages of preferred crude grades could force it to use alternative blends, potentially affecting production costs, operating efficiency and refining margins.
source: punch