Dangote Industries Limited says it expects its 650,000-barrel-per-day refinery to be fully supplied with crude oil from Nigerian producers by the end of 2025 -- a major step towards cutting dependence on foreign oil and reshaping the country's energy landscape.
This follows new indications that over half of the crude processed at the facility in June was sourced locally.
The development suggests growing collaboration between the refinery, local oil traders, and the Nigerian government.
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"We believe that many of the long-term contracts with foreign suppliers will run out this year," said Devakumar Edwin, Vice President of Dangote Industries, during an interview at the Lagos-based refinery site, according to Bloomberg.
"Our target as a company is to transition to 100 percent local crude before the year runs out."
The refinery, commissioned in May 2023, was envisioned as a game changer for Nigeria -- Africa's largest oil producer -- which for decades exported crude only to import refined fuel at high costs.
That system has long been associated with corruption and fuel scarcity.
While the refinery has yet to reach full operational capacity, its phased rollout has already begun to reposition Nigeria as a net exporter of refined petroleum.
However, limited access to local crude initially forced Dangote to turn to international suppliers including Brazil, Angola, Ghana, Equatorial Guinea and the United States.
According to Edwin, the refinery processed about 550,000 barrels of crude daily in June. Of that figure, 53 percent came from domestic producers while 47 percent was imported -- mostly from the U.S.
"We've seen steady improvements in supply relations with local players," Edwin said. "As more Nigerian firms conclude their international supply obligations, we anticipate a steady rise in local deliveries."
Nigeria's upstream sector has faced significant setbacks in recent years, including a wave of divestments by international oil companies, persistent oil theft, and vandalism of pipelines in the Niger Delta.
These issues have often constrained domestic supply, despite the country's vast oil reserves.
Still, the company remains optimistic. A shipment schedule seen by Bloomberg shows the Nigerian National Petroleum Company (NNPC) is expected to supply Dangote with five crude cargoes in July -- a volume that is expected to be repeated in August. Each shipment carries close to one million barrels.
The refinery's gradual shift toward exclusive use of Nigerian crude also signals a potential boost for local producers, who stand to benefit from having a large, consistent domestic buyer.
During a recent official visit to the refinery, President of the ECOWAS Commission, Dr. Omar Alieu Touray, described the plant as "a beacon of hope" and praised its capacity to drive regional industrial development.
...Refinery reduces fuel price again, ex-depot price now N820 per litre
Meanwhile, Dangote Refinery has again within a week reduced its ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N840 per litre to N820 per litre, effective immediately.
It would be recalled that the company last week reduced its ex-depot price from N880 to N840 per litre.
With assurance of steady supply of petroleum products, more independent marketers have joined the growing list of distributors retailing Dangote Refinery's high-quality petroleum products across the country.
Dangote Group's spokesperson, Mr. Anthony Chiejina, confirmed the price adjustment in Lagos, stating: "PMS price has been reduced from N840 to N820 per litre effective immediately.
The refinery's existing partners--MRS, Heyden, Ardova (AP), Hyde, Optima, and Techno Oil--are expected to reflect the new pricing at their retail outlets.
Additionally, several new marketing companies have joined Dangote's distribution network. These include TotalEnergies, Garima Petroleum, Sunbeth Energies, Sobaz Nigeria Ltd., Virgin Forest Energy, Sixxco Oil Ltd., N.U. Synergy Ltd., and Soroman Nigeria Ltd. Others on the growing list are Jezco Oil Nigeria Ltd., Jengre, Cocean, Kifayat, Triumph Golden, Sifem Global, Riquest, and Mamu Oil, among others.
The Dangote Refinery, the largest single-train refinery in the world, continues to expand its domestic fuel distribution footprint, offering competitive pricing and improving access to refined products across Nigeria.
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The refinery, recently, announced that it has invested over N720 billion to implement its initiative of deploying 4,000 Compressed Natural Gas-powered trucks for the nationwide distribution of petroleum products, saying it is expected to save Nigerians over N1.7 trillion annually.
This step, the management, will see the refinery absorb over N1.07 trillion annually in fuel distribution costs. The initiative is also poised to significantly benefit over 42 million Micro, Small and Medium Enterprises (MSMEs) by reducing energy costs and enhancing profitability, the mega refinery said.
The initiative, which eliminates transportation costs for fuel marketers and large-scale consumers, is expected to help reduce pump prices and inflation.
From August 15, Dangote will begin the direct delivery of petrol and diesel to filling stations, industrial facilities, and other high-volume consumers, the company said earlier
