Dangote Industries has announced plans to fully transition to using only Nigerian crude oil at its refinery before the end of 2025—an ambitious move aimed at reducing the country’s reliance on imported crude.

The refinery, which has a daily processing capacity of 650,000 barrels, has already begun increasing its intake of locally sourced oil. In June, Nigerian producers accounted for 53% of its crude supply. Company executive Devakumar Edwin expressed confidence that this figure will climb steadily as some of its foreign crude contracts near expiration.

Set up as a solution to Nigeria’s ongoing fuel supply challenges, the $19 billion facility was built to process crude locally and minimize dependence on imported refined products. Since becoming operational, it has already enabled Nigeria to begin exporting refined petroleum products.

Despite this progress, several factors have limited the refinery’s ability to rely entirely on domestic crude. These include oil theft, pipeline damage, and the exit of major international oil companies from Nigeria’s onshore fields. In addition, local producers have struggled with capacity issues, while long-term export contracts have restricted the availability of crude for local use.

To support the switch, the Nigerian National Petroleum Company (NNPC) has allocated multiple crude shipments to the refinery, including five cargoes in both July and August—each delivering nearly a million barrels.

While the refinery previously imported crude from countries like the U.S., Ghana, and Brazil to meet its needs, the goal is now to phase those out as local supply becomes more stable.

Commissioned in May 2023, the Dangote Refinery is widely seen as a game-changer for Nigeria’s energy sector. It has earned praise from regional leaders, including ECOWAS Commission President Dr. Omar Alieu Touray, who called it a symbol of private sector-driven growth and a catalyst for Africa’s industrial development.