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15 hours ago
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- Dangote Petroluem Refinery has accrued its processing level and is uncovering it hard to root crude locally
- To adjacent the spread and conscionable its accumulation requirement, the refinery has decided to summation the import of US crude
- New information shows that Dangote refinery has sourced astir one-third of its crude from the US successful 2025
Legit.ng writer Dave Ibemere has implicit a decennary of acquisition successful concern journalism, with in-depth cognition of the Nigerian economy, stocks, and wide marketplace trends.
Dangote Refinery, Africa's largest lipid processing works located adjacent Lagos, has accrued its imports of US crude lipid this year.
The refinery’s reliance connected imported crude for accumulation underscores Nigeria’s ongoing lipid accumulation conflict contempt assorted promises and the naira for crude policy.
Source: Getty Images
Nigeria miss crude lipid accumulation target
According to the May 2025 Monthly Oil Report by the Organisation of the Petroleum Exporting Countries (OPEC), Nigeria’s crude lipid production averaged 1.468 cardinal barrels per time (mbpd) successful the archetypal 4th of 2025, importantly beneath the 2 mbpd people acceptable successful the national budget.
While the output marks a humble summation from the 1.435 mbpd recorded successful the 4th fourth of 2024, it inactive underscores the country’s ongoing conflict to conscionable its accumulation goals.
A breakdown of monthly figures shows accumulation stood astatine 1.465 mbpd successful February, dropped to 1.401 mbpd successful March, and roseate to 1.486 mbpd successful April.
OPEC’s study highlighted the persistent challenges facing Nigeria’s lipid sector, including underinvestment, pipeline vandalism, and operational disruptions.
Despite falling beneath home accumulation goals, Nigeria retained its presumption arsenic Africa’s starring crude lipid exporter, BusinessDay reports.
Source: Getty Images
Dangote seeks crude lipid solution from abroad
A spokesperson for Dangote said the accrued usage of US lipid reflects the refinery’s rising processing levels and a simplification of Nigerian crude that’s disposable to buy.
The refinery, which has been cardinal successful supplying fuels to Nigeria's colonisation of 228 million, has sourced astir one-third of its crude from the United States, with a notable penchant for West Texas Intermediate (WTI), a Midland grade, according to information compiled by Bloomberg from vessel tracking records.
These purchases person not lone supported Dangote's operational needs.
The determination to import U.S. crude besides coincided with unsocial marketplace conditions, including weaker request for WTI Midland successful Asia owed to Chinese tariffs connected U.S. crude and ample supplies of competing grades similar Abu Dhabi's Murban crude.
In caller tenders, Dangote Refinery is acceptable to person astir 14 cardinal barrels of WTI Midland during June and July alone, with trading elephantine Vitol Group emerging arsenic a important supplier, according to vas booking data.
Depot owners trim substance outgo
Earlier, Legit.ng reported that substance depot owners person reduced the terms of petrol beneath the complaint offered by Dangote Refinery, intensifying competition successful Nigeria’s downstream sector.
The determination comes arsenic the Nigerian National Petroleum Company Limited (NNPC) announced a caller pump terms of N870 astatine its filling stations successful Lagos, besides beneath the complaint offered by Dangote retail partners.
Multiple depots crossed Lagos, Warri, and Delta amusement operators specified arsenic AITEO, AIPEC, A.A. Rano, and NIPCO are offering petrol astatine betwixt N826 and N826 per litre arsenic of Wednesday, June 3
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Source: Legit.ng
