Dangote Refinery Shifts to Nigerian Crude, Expands Regionally

Dangote Refinery, Africa's largest, is set to transition fully to sourcing crude oil from Nigerian producers by the end of 2025, marking a departure from reliance on imports. The transition has been complicated by challenges such as crude theft and pipeline attacks, but Dangote executives are optimistic that improved domestic supply arrangements and expiring foreign contracts will enable the switch. The Nigerian National Petroleum Company Limited has allocated 10 million barrels of crude to Dangote for July and August, supporting this transition. Meanwhile, the Nigerian government faces criticism and potential investigations over the continued dysfunction and possible sale of state-owned refineries after extensive, costly rehabilitation efforts failed. Dangote is also expanding its reach by building storage tanks in Namibia to supply fuel to southern African countries, potentially altering regional energy trade dynamics. These developments highlight a shift towards private sector-led refining as public infrastructure falters.