Nigeria’s massive Dangote petroleum refinery sourced nearly 78% of its crude oil from domestic producers in May and June, according to newly released data.
The figures were made public by the 650,000-barrels-per-day facility in Lekki to dispel rumours that its fuel pricing shifts daily in tandem with international spot market rates. Instead, the refinery stated that it purchases its feedstock weeks or months in advance under fixed monthly average contracts.
Out of 40.4 million barrels of crude delivered to the facility over the two months, 31.43 million barrels came from Nigerian fields. The single largest domestic grade processed was Bonny Light, closely followed by other local blends including Qua Iboe, Amenam, and Forcados.
The remaining 22% of the refinery’s intake—about 8.97 million barrels—was imported from international markets to supplement local production. Libya emerged as the top foreign supplier, alongside shipments from Guyana, Angola, Ghana, and various global trading blends.
The data also revealed a significant drop in costs for the refinery. In May, Dangote spent $2.68bn (£2.1bn) on crude, with some premium Nigerian grades costing as much as $134 per barrel. By June, following a dip in global oil prices fueled by demand concerns, total spending dropped to $1.80bn, with most cargoes trading between $90 and $97 per barrel.
The reliance on local crude comes after previous concerns raised by the refinery over difficulties in securing enough domestic supply, which had forced it to look abroad.
Energy experts say the combination of a steady local supply and lower global crude prices should reduce freight costs and expand refining margins. There are growing expectations among local analysts that these reduced overheads could translate into lower fuel prices for Nigerian consumers later this month.
Since it began petrol production in 2024, the multi-billion-dollar refinery has steadily reduced Nigeria’s long-standing reliance on imported fuel, pivoting the country toward becoming a regional refining hub.
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