The Dangote Refining Company has bought two cargoes of crude oil from the United Arab Emirates, marking its first purchase from a Middle Eastern supplier as it looks to broaden its feedstock amid a tightening domestic market.
First UAE shipments arrive at the 650,000‑bpd plant
A source involved in the refinery’s operations, speaking to S&P Global Commodity Insights, confirmed that the two shipments are the inaugural UAE crude deliveries for the facility. The cargoes arrive on a schedule that traditionally relied on Nigerian, African and U.S. grades.
Why the shift matters
Domestic crude supplies have become less reliable, prompting the refinery to explore alternatives. The United Nations‑mandated cease‑fire between the United States and Iran has reopened the Strait of Hormuz, a move that encouraged oil tankers to return to the Gulf and increased the flow of regional crude.
Data from S&P Global Commodities at Sea indicate that about 70 percent of the refinery’s imports in 2025 came from Nigeria, with roughly a quarter sourced from the United States. The new Middle Eastern purchases could change that mix as the plant expands.
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Expanding the blend
Aliko Dangote and chief executive David Bird told Platts earlier this year that the refinery plans to add heavier grades to its processing slate. “We definitely want to heavy up the barrel,” Bird said in April, adding that the refinery aims to become a “crude blending” operation.
He suggested that, at a future capacity of 1.4 million barrels per day, the plant could handle 30 percent Middle Eastern grades on each processing train. That would be a notable shift from the light sweet Nigerian oil the facility was originally built to handle.
Current import profile
At present, the refinery receives between 13 and 15 cargoes of Nigerian crude each month under a naira‑denominated supply agreement with the Nigerian National Petroleum Company. The arrangement reduces exposure to foreign‑exchange risk but has been strained by limited crude availability and bottlenecks at export terminals.
In 2026 the plant also imported crude from Angola, Ghana, Libya and Guyana, further diversifying its feedstock base.
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Future capacity plans
Dangote intends to double the refinery’s throughput to 1.4 million barrels per day by the end of 2028. If achieved, the facility could process about 80 percent of Nigeria’s recent daily crude output, making a broader and more dependable supply chain essential.
Industry observers note that securing a wider range of crude sources reduces reliance on any single market and may help insulate the operation from regional disruptions.
Potential challenges
While the new UAE cargoes signal a strategic pivot, the refinery still faces logistical hurdles. Export terminal capacity in Nigeria remains limited, and the global market’s volatility could affect pricing and availability of foreign crude.
Analysts also point out that integrating heavier grades requires adjustments in blending technology and may impact product yields.
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Broader implications for Nigeria’s oil sector
The move highlights a trend among large African refiners to look beyond national barrels for feedstock. As domestic production fluctuates, facilities like this one may increasingly rely on imports to meet processing goals.
The shift could mean higher import costs but also greater resilience in the face of supply shocks.
The refinery aims for greater feedstock flexibility.
In the meantime, the arrival of the UAE cargoes adds a new dimension to the refinery’s feedstock strategy, reflecting both market realities and the company’s long‑term ambition to dominate the regional refining arena.