The Dangote Refinery has turned to U.S. crude imports to stay operational, exposing deep-rooted issues in Nigeria’s oil production despite its massive reserves.
With local supply disrupted by theft and underinvestment, the $20 billion refinery now relies heavily on foreign oil.
The Dangote Refinery, hailed as Africa’s largest and most sophisticated oil processing facility, has significantly increased its importation of crude oil from the United States. This move, while strategic, points to a deeper issue: Nigeria’s continued struggle to meet its own energy production needs despite its status as one of Africa’s largest oil producers.
According to recent industry reports, the $20 billion refinery sourced nearly one-third of its crude supply from the U.S. in 2025 alone. This decision stems from persistent challenges in sourcing sufficient volumes of crude locally. Factors such as pipeline vandalism, oil theft, underinvestment, and operational inefficiencies have plagued Nigeria’s upstream oil sector, leaving refineries like Dangote’s with limited local supply options.
Built with a processing capacity of 650,000 barrels per day, the refinery was initially envisioned as a solution to Nigeria’s chronic fuel importation problem. However, the reality has proven more complex. Rather than exclusively refining Nigerian crude, the facility has had to rely on foreign imports to stay operational, particularly from the U.S., which currently enjoys stable output and a surplus of light crude that is ideal for refining.
This growing reliance on imported crude has implications for Nigeria’s energy sovereignty. Industry analysts warn that unless domestic production constraints are swiftly addressed, the country risks weakening the economic benefits intended from the refinery project. The situation also raises questions about the effectiveness of regulatory oversight and long-term planning within the oil and gas sector.
Despite these challenges, the Dangote Refinery has pushed forward. Processing levels have steadily risen since operations began, and the facility is now contributing to the local fuel supply, though not yet at full capacity. With the refinery expected to play a central role in stabilising Nigeria’s fuel prices and reducing foreign exchange pressure, stakeholders stress the urgency of resolving local production issues.
In response, the Nigerian government has pledged support for upstream investments and intensified efforts to curb oil theft and sabotage. Whether these initiatives will bear fruit quickly enough remains uncertain.
Ultimately, the success of the Dangote Refinery is closely tied to Nigeria’s ability to overcome the structural deficiencies plaguing its oil production sector. As Africa watches closely, this refinery’s story could either become a model for energy independence or a cautionary tale of missed opportunities.
