The Dangote Refinery has significantly ramped up its reliance on crude oil imports from the United States due to persistent shortfalls in local crude supply, Africa’s wealthiest businessman, Aliko Dangote, disclosed this week.

The $20 billion refinery, which boasts a processing capacity of 650,000 barrels per day, has reportedly begun receiving large volumes of U.S. West Texas Intermediate (WTI) crude oil to sustain its operations. Between April and July 2025 alone, the facility is projected to take delivery of approximately 17.65 million barrels, with 3.65 million barrels already received in April and May, according to internal data.

Speaking during a visit by the Technical Committee of the One-Stop Shop (OSS) initiative on naira-based crude oil transactions, Dangote emphasized that sourcing crude oil locally remains a challenge despite ongoing government efforts. He attributed the refinery’s growing dependence on U.S. supplies to insufficient domestic allocations, which has hampered the refinery’s drive toward full operational capacity.

In a statement released on Thursday by the Dangote Group, Dangote hailed the OSS Committee for championing the naira-for-crude policy introduced under President Bola Tinubu’s administration. He acknowledged that the policy has positively impacted the local economy by stabilizing the exchange rate and driving down fuel prices.

However, he stressed that the limited availability of Nigerian crude has compelled the refinery to turn to the international market, primarily the U.S., to bridge the supply gap. “Our reliance on American crude has intensified in recent months due to persistent domestic shortfalls,” the statement read.

According to shipping data compiled by Bloomberg, U.S. crude now represents roughly one-third of all feedstock acquired by the refinery so far in 2025. Much of this supply is comprised of the WTI Midland grade, known for its compatibility with the refinery’s sophisticated configuration and its high yield of refined petroleum products.

During the tour, OSS Coordinator Mrs. Maureen Ogbonna praised the refinery as a monumental industrial undertaking that is reshaping Nigeria’s economic landscape. “This facility is more than a refinery—it is a catalyst for national transformation. Every sector, from pharmaceuticals to construction, will benefit from its output,” she said.

Ogbonna also reaffirmed the government’s commitment to removing structural and regulatory obstacles that hinder seamless crude supply to local refineries. “We are working towards a future where Nigeria no longer depends on fuel imports. Our mandate is to support this transition by ensuring a steady, local supply of crude oil in naira,” she said.

She also lauded Dangote’s vision, calling the scale of the project “unprecedented” and describing its advanced laboratory infrastructure as “unmatched, even globally.”

Meanwhile, the Dangote Refinery has received crude from 22 different vessels between April 6 and May 28, 2025, at the Lekki Deep Seaport, delivering a total of over 3 million barrels. These shipments included multiple deliveries in April—such as 130,000 barrels on April 1, 294,076 barrels on April 9, and another 140,000 barrels on April 30—as well as continued arrivals throughout May.

Recent maritime reports compiled by Blue Sea Maritime indicate that the U.S. now supplies more crude to Dangote’s plant than Nigeria’s own oil producers. In the past seven months alone, the refinery has imported approximately 27.1 million barrels of U.S. crude, compared to the 46.2 million barrels sourced locally during the same timeframe.

The increased volume of American imports raises critical questions about the effectiveness of Nigeria’s crude oil allocation policies. The refinery has been granted an allocation of 350,000 barrels under the government’s revised naira-for-crude framework. However, analysts say this is insufficient to support the facility’s operational goals.

Industry experts note that U.S. crude is not only abundant and competitively priced but also offers quality advantages. WTI’s light, sweet composition makes it ideal for refining into high-value products like gasoline and aviation fuel. Randy Hurburun, a senior refinery analyst at Energy Aspects Ltd, pointed out that WTI enables “superior yields and better blending for gasoline,” giving it a distinct edge over local Nigerian grades like Bonny Light and Qua Iboe, which are often costlier and subject to supply disruptions.

According to global oil strategist Aleksandr Butov, the refinery’s pivot to U.S. crude underscores deeper issues within Nigeria’s upstream oil sector, such as underinvestment and infrastructure challenges. “Even with government-backed initiatives, reliability remains a major concern,” he said.

Earlier this year, a Dangote Group spokesperson confirmed that the refinery was looking beyond Nigeria to secure more stable and predictable crude supplies. “We are scaling up imports in line with our commitment to hit full capacity by mid-2025,” the spokesperson stated.

This move, however, has sparked renewed debate over the use of scarce foreign exchange to import oil—a paradox, considering Nigeria’s status as a major crude producer. While the naira-for-crude deal was originally suspended earlier in 2025, it has since been reactivated under Tinubu’s directive to ensure sustainable local refining and shield the naira from further volatility.

According to the refinery’s Chief Branding and Communications Officer, Anthony Chiejina, the facility’s pricing strategy is designed to mitigate the impact of global price fluctuations. “Thanks to the support of the President and the naira-for-crude policy, we are able to offer stable fuel prices and support the Nigerian economy,” he said in a recent release.

The Dangote Refinery remains the continent’s largest single-train facility, with the capacity to meet all of Nigeria’s demand for petrol, diesel, jet fuel, and kerosene, while exporting the surplus. Yet, its success continues to be tied to the country’s ability to resolve its domestic crude supply dilemma—a challenge that remains unsolved as the refinery looks outward to keep its operations afloat.