Nigeria’s Dangote Petroleum Refinery has secured at least 16 million barrels of Nigerian crude oil for delivery in October, reinforcing the facility’s growing role in the country’s oil industry as it continues to increase processing volumes.
According to four industry sources cited by Reuters, the October purchases amount to roughly 520,000 barrels per day, representing a substantial share of the refinery’s approximately 700,000-barrel-per-day capacity. The refinery is located in Lagos and is Africa’s largest.
NNPC remains a major supplier
The crude will come through a combination of allocations from the Nigerian National Petroleum Company (NNPC) and additional purchases made through tenders.
NNPC is expected to supply eight Nigerian crude cargoes for October, together with one cargo of U.S. WTI Midland crude. Dangote has also secured another WTI cargo through a spot tender, while additional Nigerian grades are expected to make up the remainder of its October requirements. (Reuters)
The refinery has increasingly turned to both domestic and international crude supplies. In previous months, it has purchased grades from countries including Libya and Guyana, giving the plant greater flexibility in securing feedstock.
Domestic crude demand rises
The latest purchases highlight the refinery’s growing demand for Nigerian crude. Dangote received about 565,000 barrels per day of Nigerian crude in August, according to Kpler data cited by Reuters, nearly twice its average intake of about 280,000 barrels per day during the previous year. (Reuters)
The increase means more Nigerian crude is being directed toward domestic processing rather than exported as raw crude. This could reduce the volume available for international buyers at a time when global oil markets are already facing supply concerns.
Oil prices have recently climbed above $100 per barrel, with the market under pressure from disruptions linked to the conflict involving Iran and attacks on oil tankers and shipping routes. Brent crude reached about $106.60 per barrel on September 10.
IPO puts refinery under the spotlight
The increase in crude procurement also comes as Dangote prepares for a major initial public offering (IPO) of its refinery business.
Nigeria’s Securities and Exchange Commission has approved an IPO expected to raise roughly $1.6 billion, potentially making it Africa’s largest share offering. The refinery’s ability to secure reliable crude supplies is therefore likely to be closely watched by prospective investors.
The refinery’s growing domestic crude intake could strengthen Nigeria’s position as a major supplier of refined petroleum products while supporting the country’s ambition to reduce its reliance on imported fuels.
Strategic importance for Nigeria
The Dangote refinery has become increasingly important to Nigeria’s energy sector since beginning operations. Its large-scale processing capacity gives the country greater potential to refine its own crude and export surplus petroleum products.
With global energy markets facing heightened geopolitical risks, the facility’s ability to secure substantial Nigerian crude supplies could become even more significant. The October procurement demonstrates Dangote’s continued push to maintain high refinery utilisation while positioning the business for its upcoming public-market debut.
________________________________________________________________________________________________________________
