Dangote Refinery turns to U.S. crude amid shifts in global oil dynamics

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Dangote Refinery, located on the outskirts of Lagos and boasting a processing capacity of 650,000 barrels per day (bpd), the refinery—owned by billionaire Aliko Dangote—has become a major buyer of U.S. crude.

According to Bloomberg ship-tracking data, the facility has sourced nearly a third of its crude supply from the U.S., with the share of American imports almost doubling since 2024, when the refinery began producing fuel. 

Analysts say the refinery’s growing appetite for U.S. West Texas Intermediate (WTI) grade crude is driven by multiple strategic and operational factors. WTI yields higher volumes of gasoline and other refined products, making it an optimal input as the refinery scales up to full capacity.

This shift comes at a time when Nigerian crude production is declining, leaving the Dangote Refinery to explore alternative feedstocks. Additionally, as Asian demand for U.S. crude dropped amid prolonged U.S.-China trade tensions, more American barrels became available to markets like West Africa.

“WTI’s versatility and availability have made it a practical option for the refinery,” noted an industry analyst. “With the plant now producing diesel, naphtha, and gasoline, sourcing the right type of crude is essential.” 

The data indicates that the refinery’s U.S. crude intake is set to hit 14 million barrels this summer, with trading powerhouse Vitol Group acting as the primary supplier.

In a symbolic gesture recognizing government support, Aliko Dangote recently announced that the main access road to the refinery has been renamed Bola Ahmed Tinubu Road, in honor of Nigeria’s President.

The announcement was made during the commissioning of the Deep-Sea Port Access Road, which connects the Dangote industrial complex to Eleko Junction in Lagos.

“You are largely responsible for the Dangote Refinery complex,” Dangote said to President Tinubu. “This road now bears your name as a mark of our appreciation for your leadership and encouragement of private investment.”

Dangote added that the access road is part of a broader infrastructure network that will ultimately link the refinery to Nigeria’s neighbors—including Chad and Cameroon—as well as key logistics routes like the Epe–Ijebu–Ode corridor and Sagamu–Benin Expressway.