Dangote Refinery Sourced 78% of Crude Locally as Imported Oil Fell to 22% in May–June

Dangote Petroleum Refinery relied heavily on Nigerian crude oil between May and June 2026, with nearly four out of every five barrels processed coming from local producers, reinforcing the country’s role as the refinery’s primary feedstock supplier.

Fresh cargo discharge and pricing records released by the refinery show that 78 per cent of its crude oil supply came from the Nigerian National Petroleum Company Limited (NNPCL) and other indigenous producers, while imported crude from Angola, Libya, Guyana, Ghana and international trading blends accounted for the remaining 22 per cent.

The refinery released the figures to clarify concerns surrounding its fuel pricing strategy, explaining that crude purchases are made weeks or months in advance under contracts linked to monthly average prices rather than daily international spot market fluctuations.

During the two-month review period, the 650,000-barrels-per-day refinery received 40.40 million barrels of crude oil, with 31.43 million barrels sourced domestically and 8.97 million barrels imported. Total deliveries stood at 21.47 million barrels in May and 18.93 million barrels in June, with Nigerian crude consistently accounting for almost 78 per cent of monthly supplies.

The refinery processed several Nigerian crude grades, including Bonny Light, Qua Iboe, Forcados, Amenam, Bonga, Escravos, Agbami, Cawthorne, Okwori and Utapate. Imported feedstock included Libya’s El Sharara, Angola’s Cabinda, Guyana’s Payara, Ghana’s Jubilee, alongside international trading blends such as CJ Blend and EA Blend.

Among all crude grades supplied, Bonny Light emerged as the refinery’s largest feedstock with 5.90 million barrels, followed by Qua Iboe with 4.80 million barrels, Amenam with 4.00 million barrels, and Forcados with 3.89 million barrels. Together, these Nigerian grades accounted for more than 18.5 million barrels, representing nearly half of the refinery’s total crude intake over the period.

The records also revealed a significant decline in crude acquisition costs. While some cargoes in May were purchased for as much as $134 per barrel, most June deliveries were priced between $90 and $97 per barrel, reducing the refinery’s crude expenditure from approximately $2.68 billion in May to $1.80 billion in June. Industry observers attribute the decline to easing geopolitical tensions, increased global production and weaker demand in international oil markets.

The latest figures come as the Federal Government intensifies efforts to strengthen the domestic crude supply obligation framework after concerns over inadequate feedstock for local refiners. Although Dangote Refinery previously increased imports to bridge supply gaps, the new data indicate that Nigerian crude remains the backbone of its operations.

Commenting on the development, the Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, described the increase in domestic crude supply as encouraging for Nigeria’s refining industry.

“For me, it is quite impressive that the crude feedstock from indigenous producers has increased significantly to over 70 per cent. It shows that the government is quite concerned about local refineries and the inflow of Nigerian crude to the Dangote refinery.”

Jeremiah added that the combination of lower international crude prices and greater access to locally produced oil could pave the way for another reduction in petrol prices during July.

“This should reflect in pricing, and I believe it would reflect this month of July. The refinery has started receiving cheaper crude. With that arrangement, freight and logistics costs will reduce, and Nigerians should expect lower prices.”

He noted that increased domestic supply reduces reliance on expensive imported crude, lowers transportation costs and improves refining margins, creating room for further reductions in ex-depot petrol prices and potentially cheaper fuel for consumers.