Nigeria's Dangote refinery owner says crude supply doubled amid Middle East disruption risks

Nigeria has increased crude supply to Dangote Petroleum Refinery following disruptions to global supply chains linked to tensions in the Middle East, Bloomberg reported on April 7.

Billionaire owner Aliko Dangote said the refinery received 10 crude cargoes from Nigerian National Petroleum Company Limited (NNPCL) in March, up from an average of five cargoes per month since October 2024, when both parties agreed on a naira-denominated supply arrangement.

“Last month, they gave us six cargoes for naira and four cargoes for dollars,” Dangote is quoted as saying.

The refinery, with a nameplate capacity of 650,000bpd, requires about 19 cargoes per month to operate at full capacity, indicating that March deliveries still fall short of optimal utilisation.

Dangote said the refinery continues to supplement local supply with imported crude from the United States and other African producers to bridge the gap.

He added that supply from international oil companies operating in Nigeria has not increased, with producers preferring to sell to traders, forcing the refinery to repurchase crude at higher prices.

“The higher we pay, the higher the cost of petroleum products will be, because we have to pass on the cost,” Dangote said.

Dangote said the refinery exported about 17 cargoes of refined products to African markets in March, underscoring its growing role in regional fuel supply.

The facility is also producing polypropylene for industrial use, which Dangote said is in high demand amid supply constraints linked to developments in the Middle East.

Nigeria has increased domestic crude allocation to the refinery as supply constraints persist in international markets.