Nigeria’s Dangote Petroleum Refinery has imported its first-ever crude oil cargoes from the United Arab Emirates, marking a significant shift in its sourcing strategy as it seeks to secure more reliable feedstock supplies amid persistent domestic crude shortages.
According to a report by S&P Global Commodity Insights, the 700,000-barrels-per-day refinery recently purchased two cargoes of UAE crude, representing its first procurement from the Middle East. Until now, the refinery had relied largely on Nigerian, other African, and United States crude grades.
The development follows the resumption of crude exports from the Middle East after an interim peace agreement between the United States and Iran restored confidence in shipping through the Strait of Hormuz.
Although the refinery was designed primarily to process Nigeria’s light sweet crude, it has increasingly diversified its crude slate as operations continue to expand.
S&P Global noted that the refinery’s agreement with the Nigerian National Petroleum Company (NNPC) guarantees the delivery of between 13 and 15 cargoes of Nigerian crude monthly under the naira-for-crude arrangement, helping reduce the refinery’s foreign exchange exposure. However, inadequate domestic crude availability and operational challenges at export terminals have continued to constrain supplies.
Dangote Refinery Chief Executive Officer, David Bird, had previously acknowledged these challenges, noting that the refinery had been compelled to source crude from outside Nigeria to sustain operations.
The refinery’s growing appetite for crude is expected to increase further as it pursues plans to double its processing capacity to 1.4 million barrels per day by the end of 2028. At that level, the facility would be capable of processing about 80 per cent of Nigeria’s recent daily crude oil production.
Speaking earlier this year on the refinery’s evolving feedstock strategy, Bird said: “We definitely want to heavy up the barrel.” He added that “we will be in the crude blending game. So you can easily imagine at 1.4 million b/d we could process 30 per cent Middle Eastern grades on each train.”
According to S&P Global Commodity Insights, the refinery is broadening the range of crude grades it processes as it positions itself to operate as a fully merchant refinery. In 2025, approximately 70 per cent of the refinery’s crude imports originated from Nigeria, while about 24 per cent came from the United States.
The importation of UAE crude underscores the refinery’s determination to maintain operational flexibility while reducing its dependence on domestic supply constraints, even as efforts continue to strengthen Nigeria’s crude supply arrangements. EFA.
