The Traffic

"Dangote Strikes Again: US Crude Shipments Resume After 3-Month Pause"

By Achimi Muktar

In a bold move that underscores its global ambitions, the Dangote Petroleum Refinery has resumed importing crude oil from the United States, reigniting its presence on the international oil stage. This comes after a three-month focus on domestic crude supply—a strategy that may have hit a snag.

The refinery

is now expecting the arrival of two million barrels of WTI Midland crude from Chevron Corp, set to be delivered via the supertanker Azure Nova next month, according to a Bloomberg report.

This development has sparked speculation about potential challenges in the Nigerian government’s naira-for-crude initiative. Under this program, the Nigerian National Petroleum Company Limited (NNPCL) was to supply up to 400,000 barrels of crude daily to the refinery, paid for in local currency. However, the return to US imports suggests the refinery may not be receiving sufficient local crude to meet its needs.

Dangote’s Expanding Global Influence

The Dangote refinery, which has gradually increased its purchases of crude from both Nigeria and the US, is emerging as a significant player in global oil markets. Its demand for foreign crude is intensifying competition for barrels traditionally consumed by European refiners, further cementing its influence.

Although the reasons for the renewed US imports remain unclear, a report from Sparta Commodities hints at lower shipping costs making US crude more competitive in European and West African markets.

Financing the Mega-Refinery

As the refinery ramps up operations, it’s also seeking additional funding to bolster crude imports. Recent reports indicate that Aliko Dangote, Chairman of the Dangote Group, is in advanced talks with commercial banks, development lenders, and oil traders to secure billions of dollars to meet the refinery’s daily capacity of 300,000 barrels.

This financial push aligns with the refinery’s strategic pivot towards exporting refined petroleum products to West African countries, a move that could reshape regional fuel markets.

"We Did What the IOCs Couldn’t Do"

Amid this operational milestone, Dangote Industries Limited Vice President Devakumar Edwin proudly highlighted the refinery’s achievements during a visit from the Senate Committee on Trade and Investment. Edwin asserted that the Dangote Group accomplished what international oil giants like Shell, Chevron, and ExxonMobil never dared to: building the world’s largest single-train refinery.

“This is a feat that only a handful of companies globally can achieve,” Edwin remarked. “A Nigerian company took on the challenge and delivered on time.”

The $20 billion refinery, located in Lagos’s Lekki Free Zone, has drawn praise as a critical national asset. Senator Sadiq Umar, Chair of the Senate Committee, pledged legislative support to protect and promote the project.

Challenges with Crude Supply

The refinery’s journey has not been without hurdles. Earlier this year, Aliko Dangote accused international oil companies (IOCs) of attempting to sabotage the facility by withholding crude supplies. However, presidential intervention ensured a steady flow of naira-paid Nigerian crude, a move aimed at reducing foreign exchange burdens and stabilizing local fuel markets.

Looking Ahead

Having commenced production in January, the refinery now produces diesel, aviation fuel, and premium motor spirits, with plans to expand its export footprint. As the refinery scales up, its resumption of US crude imports signals an adaptive strategy to balance local and international supply chains.

The world is watching as the Dangote refinery reshapes the narrative of energy production in Africa, setting new benchmarks for ambition and execution