LAGOS — Nigeria’s mega-refinery, the Dangote Petroleum Refinery, has imported its first-ever cargoes of Middle Eastern crude oil from the United Arab Emirates (UAE), marking a significant shift in its sourcing strategy as local supply constraints persist.
The procurement of two UAE crude cargoes was first reported by S&P Global Commodity Insights.
Historically, the facility has heavily favored domestic supply. According to data from S&P Global, Dangote sourced 70% of its crude from Nigeria and 24% from the United States over the course of 2025. However, operational expansions have forced the refinery to aggressively diversify its feedstock dependencies.
Production Milestones and Ambitious Expansion Goals
The pivot to Middle Eastern oil comes on the heels of major production growth at the Lekki-based facility.
Current Capacity: The refinery hit a milestone processing volume of 700,000 barrels of crude oil per day (bpd).
Future Targets: Management plans to double this output to 1.4 million bpd within the next 30 months.
If achieved, the expansion will cement the facility's position as one of the single largest refining complexes in the world.
Domestic Supply Shortfalls Push Diversification
The decision to tap international markets highlights ongoing production bottlenecks within Nigeria's oil sector.
The state-backed Nigerian National Petroleum Company (NNPC) had previously guaranteed a supply of 13 to 15 monthly crude cargoes to incentivize the processing of domestic oil. However, persistent infrastructure challenges, theft, and underinvestment have left Nigeria struggling to meet its domestic supply commitments to the refinery.
Geopolitical Tailwinds: The refinery's entry into the Middle Eastern market has been smoothed by a recent interim peace agreement between the United States and Iran. The diplomatic breakthrough has stabilized maritime traffic through the critical Strait of Hormuz, revitalizing regional oil supplies and lowering shipping risks for African buyers.
