Dangote Refinery Gets 60% of Crude Supply Locally

The Dangote Petroleum Refinery sourced about 60 per cent of its crude feedstock from Nigeria in the 12 months ended June 30, 2026, according to information contained in the refinery’s initial public offering prospectus.

The disclosure means Nigerian crude supplied the majority of the refinery’s feedstock during the period, although the facility continued to rely significantly on international crude purchases.

The figures provide a clearer picture of how the 700,000-barrel-per-day refinery is balancing domestic crude supply with imports as it expands production and prepares for its public listing.

Dangote sourced about 116 million barrels locally

The refinery processed approximately 26.4 million metric tonnes of crude during the 12-month period.

Using a standard conversion of 7.33 barrels per metric tonne, that volume represents roughly 193.5 million barrels. Applying the 60 per cent Nigerian sourcing figure produces an estimated 116 million barrels sourced from Nigeria.

The prospectus said the Nigerian supply came through several channels, including term arrangements with the Nigerian National Petroleum Company Limited, purchases under the Federal Government’s crude-for-naira programme, and spot purchases from international oil companies and domestic producers.

However, the prospectus did not provide a detailed breakdown showing how much of the estimated 116 million barrels came from NNPC, international oil companies or other domestic producers.

The refinery also said its arrangements under the Domestic Crude Supply Obligation framework give it access to up to 350,000 barrels per day, subject to crude availability and the terms of the relevant agreements.

International crude remains important

Despite the majority of feedstock coming from Nigeria, about 40 per cent of the refinery’s requirements during the period was sourced internationally.

The refinery said it purchased crude through the international spot market and other arrangements with international counterparties.

It has processed 36 different crude grades from Africa, South America, the United States and the Middle East, according to the prospectus.

The company said crude selection is influenced not only by availability but also by refinery economics, expected product yields, operating conditions and prevailing refined-product prices.

That means the refinery can choose between different crude grades based on how efficiently each type can be processed and the value of the resulting products.

NUPRC data shows domestic supply improved in Q2

Separate data from the Nigerian Upstream Petroleum Regulatory Commission shows that domestic crude supply to local refineries improved significantly during the second quarter of 2026.

NUPRC reported that 53.7 million barrels of crude oil and condensate were supplied to local refineries between April and June, representing an overall Domestic Crude Supply Obligation performance rate of 97.4 per cent.

Dangote accounted for the overwhelming share of crude offered to domestic refineries during the quarter.

According to NUPRC, producers offered the Dangote refinery 68.1 million barrels during Q2 against a stated requirement of 63 million barrels.

The volume offered to Dangote represented 98 per cent of all crude volumes offered to local refineries during the period.

The refinery eventually accepted 52.6 million barrels, equivalent to 78 per cent of what producers offered it.

The figures illustrate an important distinction between crude being offered to a refinery and crude actually being accepted and processed.

Crude supply remains a major issue

The latest disclosure comes against a background of continuing debate over whether Nigeria can provide enough crude to support its growing domestic refining capacity.

Dangote has previously had to supplement Nigerian supplies with international crude.

In June, Reuters reported that the refinery imported two million barrels of crude from the United Arab Emirates, its first known UAE crude imports. Earlier in the year, the refinery had also received crude from other international sources.

The refinery’s prospectus also warns that supply arrangements do not guarantee uninterrupted access to crude.

Possible disruptions include problems at upstream production facilities, suppliers failing to meet commitments, restrictions in oil-producing countries and security incidents affecting oil infrastructure in the Niger Delta.

The company said prolonged shortages of preferred crude grades could affect refinery yields, operating efficiency and refining margins.

Domestic crude supply matters for the refinery’s expansion

The issue becomes more significant as Dangote plans to expand its refining capacity.

The refinery is already operating at a capacity of about 700,000 barrels per day following its expansion and maintenance programme. The company has also outlined plans to increase capacity further.

The availability of competitively priced crude will therefore remain an important operating consideration.

NUPRC said the improvement in domestic crude supply during Q2 coincided with increased local oil production and the signing of long-term crude supply agreements backed by bankable sales and purchase agreements between producers and domestic refiners.

The regulator has also been examining mechanisms such as domestic crude and gas swaps to improve the availability of feedstock for Nigerian refineries.

Refinery’s supply model reduces reliance on one source

Dangote’s coastal location gives it another advantage in managing feedstock risk.

The refinery does not depend on a dedicated upstream pipeline connecting it directly to oil fields. Instead, crude is delivered by marine vessels through offshore single-point mooring facilities and associated onshore infrastructure.

This allows the refinery to receive crude from different regions when commercial conditions make alternative supplies attractive.

The model also means that domestic and international crude can form part of the same feedstock strategy rather than the refinery depending entirely on Nigerian production.

What the 60 per cent figure means

The 60 per cent figure should not be interpreted as meaning that Dangote now operates entirely on Nigerian crude.

Rather, it shows that Nigerian sources supplied the majority of its crude feedstock during the specific 12-month period covered by the prospectus.

The remaining 40 per cent came through international purchases and supply arrangements.

The data also covers a historical period ending June 30, 2026, rather than providing a real-time measure of the refinery’s crude mix today.

For Nigeria, however, the figures point to an increasingly important relationship between domestic crude production and domestic refining capacity.

As more large-scale refineries seek Nigerian crude, the ability of producers and regulators to maintain reliable supply will become increasingly important to the country’s ambition of reducing dependence on imported refined petroleum products.

The latest NUPRC figures suggest domestic supply performance improved in the second quarter, but Dangote’s continued use of international crude shows that the question of feedstock availability has not disappeared.

For the refinery, the challenge is therefore not simply securing crude, but securing enough of the right grades at competitive prices to keep a large and expanding plant operating efficiently.