Nigeria, Africa’s leading producer of crude oil, has increased its imports of U.S. WTI crude due to the Dangote Oil Refinery’s growing appetite for the hydrocarbon.
The refinery, which is Africa’s largest and one of the world’s most significant crude processing facilities, has an installed capacity of 650,000 barrels per day.
The refinery is owned by Aliko Dangote, Africa’s richest man, with an estimated net worth of about $28 billion.
According to Bloomberg’s ship-tracking data, the Dangote Refinery, located near Nigeria’s commercial capital, has purchased about a third of its crude from the United States, primarily the West Texas Intermediate (WTI) Midland grade. This proportion has nearly doubled since 2024, the year the refinery began ramping up operations.
Analysts attribute the increased procurement of American crude to a combination of strategic and operational factors.
OPEC member nations have found it difficult to economically scale up crude supply amid global competition. However, this dynamic has allowed the 650,000-bpd refinery to acquire more stored U.S. crude, particularly WTI, as it moves closer to full operational capacity.
Another reason for Dangote’s preference is WTI’s higher yield of gasoline and refined products.
Additionally, parts of the Asian market for WTI crude contracted this year due to the ongoing U.S.-China trade tensions, increasing the availability of American crude for other regions, including West Africa.
The increased intake of U.S. crude also comes amid a decline in the availability of Nigerian crude. Bloomberg research shows that U.S. crude is expected to make up a larger portion of Dangote’s imports in June compared to the domestic supply.
The Dangote refinery began producing fuel in 2024. Diesel and naphtha production commenced in January, followed by gasoline in September.
The use of U.S. oil aligns with the refinery’s increasing processing levels and the drop in available Nigerian crude for purchase.
WTI Midland: The Dominant Grade
WTI Midland is by far the largest stream among the six benchmark crude grades. It was included in the pricing basket due to concerns about the gradual depletion of the other five—Brent, Forties, Oseberg, Ekofisk, and Troll—sourced from the North Sea, which could otherwise increase market volatility.
According to traders monitoring Dangote’s purchasing patterns, the refinery’s WTI Midland intake is expected to reach 14 million barrels this summer. The trading giant Vitol Group is listed as the largest supplier of these U.S. barrels, based on vessel bookings.
Dangote names major refinery road after Nigerian President
Aliko Dangote honored President Bola Tinubu by naming the Dangote Refinery’s main access road after him, recognizing the president’s ongoing support for the project and for privately-led infrastructure development. The announcement was made during the official commissioning of the Deep-Sea Port Access Road, which connects the Dangote Fertilizer Plant to Eleko Junction in Lagos State.
Addressing President Tinubu, Dangote said, “You are largely responsible for the Dangote Refinery complex. Mr. President, let me state that Bola Ahmed Tinubu Road will now be the primary route leading to our refinery.”
He added that despite challenging economic conditions, President Tinubu has inspired investor confidence. “Mr. President, you are a brave leader. I hope you continue this excellent work. I appreciate all your support and inspiration.”
According to Dangote, the renamed access road is part of a larger infrastructure network tied to the refinery. This network is expected to connect Nigeria with neighboring countries such as Chad and Cameroon.
Through the Epe–Ijebu–Ode corridor, the infrastructure also links to the Sagamu–Benin Expressway, serving as a critical logistics route.
Crude posts first weekly gains in three weeks
A positive U.S. jobs report and the resumption of trade talks between the United States and China have boosted growth expectations in the world’s two largest economies.
Crude oil settled up $1 per barrel in the final trading session of the week, marking its first weekly gain in three weeks. West Texas Intermediate crude ended the day at $64 per barrel, up 2%.
Supply dynamics in the global oil market also supported the price uptick. Nine OPEC countries bound by production targets increased output by less than expected in May.
Iraq and the United Arab Emirates either did not increase production or did so only marginally.
Meanwhile, Libya—one of the three OPEC members not subject to quotas—raised its production to a 13-year high of over 1.3 million barrels per day. Total OPEC output in May reached 27.54 million barrels per day, about 200,000 barrels per day higher than in April.
