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Nigeria Buys U.S. Oil to Power Dangote Refinery

Despite being Africa’s top oil producer, Nigeria is increasingly turning to the United States for crude to power the Dangote Refinery, one of the world’s largest oil-processing facilities.

The $19 billion refinery, located near Lagos and owned by billionaire Aliko Dangote, is sourcing nearly a third of its crude from American suppliers, particularly the West Texas Intermediate (WTI) Midland grade, according to Bloomberg vessel-tracking data.

This marks a sharp contrast for a nation with vast oil reserves of its own.

“The shift is driven by both economics and efficiency,” say industry experts. WTI crude offers higher yields for gasoline and refined products, making it ideal for the refinery’s operations. “Dangote is prioritizing quality and output optimization, and right now, WTI delivers on both fronts,” one analyst noted.

Since the refinery began ramping up production in 2024, its demand for WTI has nearly doubled. Analysts expect U.S. shipments to total 14 million barrels this summer, with Vitol Group acting as the main supplier.

Market factors have played a key role. With WTI demand dipping in Asia amid ongoing U.S.-China trade tensions, Nigerian buyers have seized the opportunity.

The refinery began producing diesel and naphtha in January 2024, followed by gasoline in September of the same year. As it scales toward its full capacity of 650,000 barrels per day, local oil supply issues and OPEC-related production constraints have pushed Dangote’s team to look overseas.

“Reduced access to Nigerian crude has also played a part,” Bloomberg reports, with U.S. crude expected to make up a greater share of June imports than domestic barrels.

WTI Midland has now become the most substantial supply stream among global crude benchmarks, overtaking even the aging North Sea grades like Brent and Forties.

For Nigeria, it’s a paradox: an oil-rich country buying foreign crude to fuel its biggest refinery project. But for Dangote, it’s a strategic play for consistency, efficiency, and scale.