America Dominates Dangote Refinery’s Crude Supply Chain Despite Nigeria’s Oil Wealth
The United States has emerged as the leading crude oil supplier to Africa’s largest refinery, with American crude accounting for one-third of Dangote Refinery’s purchases this year. Despite Nigeria being Africa’s biggest crude oil producer, the 650,000-barrels-per-day facility has increasingly turned to U.S. WTI crude, particularly the Midland grade, to sustain operations.
The shift toward American crude stems from both technical and logistical advantages. According to Randy Hurburun, senior refinery analyst at Energy Aspects, WTI offers higher yields of reformate and superior gasoline blending capabilities compared to Nigerian crude. Additionally, reduced Asian demand for WTI crude due to U.S.-China trade tensions has made more American crude available to other markets.
Nigeria’s domestic crude availability has declined amid supply challenges, forcing the refinery built by Africa’s richest person, Aliko Dangote, to diversify its feedstock sources. The facility, which began fuel production in 2024 with diesel and naphtha in January and gasoline in September, is designed to meet 100% of Nigeria’s refined petroleum product demand while generating export surplus.
Source: Oriental News Nigeria