Dangote Refinery has imported crude oil from the United Arab Emirates for the first time as Nigeria’s largest refinery moves to diversify supplies and secure enough feedstock to support a planned expansion in processing capacity.
The refinery purchased two crude cargoes totalling about 2 million barrels from Abu Dhabi National Oil Company (ADNOC), traders told Reuters. The shipment includes Umm Lulu crude as well as a blend of Das Blend and Murban grades.
The move marks the first time the Nigerian refinery has sourced crude from the Middle East, expanding a supplier network that has increasingly relied on international markets to supplement limited domestic supplies.
The 650,000-barrel-per-day facility has been seeking additional crude sources as it prepares for a major production expansion expected to increase capacity to 1.4 million barrels per day by 2028.
The latest purchase comes amid more favourable global market conditions for crude buyers. Lower oil prices following a ceasefire agreement between the United States and Iran have helped ease shipping disruptions through the Strait of Hormuz, while increased supply from Gulf producers and weaker Asian demand have pressured prices for some Middle Eastern crude grades.
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However, the refinery’s decision to widen its sourcing network also highlights ongoing challenges in Nigeria’s oil sector, where domestic crude availability remains insufficient despite the country being Africa’s largest oil producer.
Dangote Refinery currently receives an average of five to seven crude cargoes monthly from the Nigerian National Petroleum Company (NNPC), below the estimated 13 to 15 cargoes required for efficient operations.
An agreement allowing the refinery to purchase crude in naira was intended to improve supply reliability, but implementation has faced challenges due to limited domestic production available to local refiners and operational difficulties affecting some export terminals.
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The situation reflects a long-standing contradiction in Nigeria’s oil industry: the country exports large volumes of crude while struggling to provide enough feedstock for its own refining sector.
During the first five months of 2026, Nigeria exported about 148.9 million barrels of crude, representing around 68.7% of total production, leaving fewer barrels available for domestic processing.
To overcome supply constraints, Dangote Refinery has expanded its international supplier base, importing crude from countries including the United States, Brazil, Algeria, Equatorial Guinea, Angola, Ghana, Libya and Guyana.
The refinery received nearly 2 million barrels of Libyan crude in May 2026, marking another milestone in its effort to build a more flexible supply chain.
The addition of Emirati crude is therefore part of a broader diversification strategy rather than a complete shift away from Nigerian supplies. Analysts say a wider international sourcing network will become increasingly important as the refinery expands, since future production levels will require a much larger and more consistent crude supply base.
The Dangote refinery, owned by Nigerian industrialist Aliko Dangote, is expected to play a major role in transforming Nigeria’s petroleum sector by reducing dependence on imported refined fuel and strengthening domestic refining capacity.
