Dangote’s Crude Appetite Is Beginning to Reshape Nigeria’s Oil Trade

Nigeria’s Dangote refinery has secured at least 16 million barrels of Nigerian crude for delivery in October, extending a sharp increase in domestic crude purchases as Africa’s largest refinery ramps up processing.

The October volume is equivalent to roughly 520,000 barrels per day, according to Reuters, citing four industry sources. The final total could rise if the refinery makes additional purchases.

The refinery received about 565,000 barrels per day of Nigerian crude in August, according to Kpler data cited by Reuters, almost double its average intake of about 280,000 barrels per day last year.

Nigerian National Petroleum Company is expected to supply eight Nigerian cargoes to the refinery for October as well as one cargo of U.S. WTI Midland crude, according to a source familiar with the supply arrangements. Dangote has also bought additional Nigerian crude through tenders and has previously sourced crude from markets including Libya and Guyana.

The increase in domestic purchases has implications for Nigeria’s crude export market because barrels supplied to the Lagos refinery are no longer available for export. That shift is taking place while international demand for Nigerian crude is elevated amid disruptions to competing Middle Eastern supply.

Dangote’s refinery began operations in 2024 and has become a significant participant in both Nigeria’s domestic fuel market and international refined-product trade. The company is also preparing an initial public offering and a major expansion programme.

Earlier this week, the company disclosed plans to spend about $14.3 billion to double processing capacity to 1.4 million barrels per day by 2029. Its IPO aims to raise about 2.15 trillion naira, or roughly $1.6 billion, with the offer expected to run from 14 September to 13 October.

The refinery reported an after-tax profit of $1.82 billion for the first half of 2026, compared with a $476 million loss for the whole of 2025, according to figures contained in its IPO prospectus and reported by Reuters.

The growing volume of Nigerian crude moving into domestic refining represents a change in the structure of the country’s petroleum trade. Nigeria has historically exported large volumes of crude while depending heavily on imported refined fuels. The extent of that shift will depend on sustained refinery throughput, crude availability and the refinery’s product sales at home and abroad.