The Dangote Petroleum Refinery has made history by purchasing crude oil from the United Arab Emirates (UAE) for the first time. The move marks a major shift in the refinery’s sourcing strategy as it looks beyond Nigeria and other traditional suppliers to meet its growing demand for crude oil.
According to a report by S&P Global Commodity Insights, the refinery recently secured two cargoes of crude oil from the Middle East. These are the first crude shipments the refinery has ever imported from the region since it began operations.
Until now, the 700,000-barrels-per-day refinery has mainly depended on crude oil from Nigeria, other African countries, and the United States. However, ongoing difficulties in securing enough Nigerian crude have forced the company to expand its list of suppliers.
The report explained that the purchases became possible after oil exports from the Middle East resumed following an interim peace agreement between the United States and Iran. The agreement eased tensions in the region and restored confidence in shipping activities through the Strait of Hormuz, one of the world’s busiest oil transport routes.
Although the Dangote Refinery was built to process Nigeria’s light sweet crude oil, the company has gradually increased the variety of crude grades it uses. This strategy is expected to improve production flexibility and ensure a more stable supply of raw materials.
The refinery had earlier reached an agreement with the Nigerian National Petroleum Company (NNPC) to receive between 13 and 15 cargoes of Nigerian crude every month, with payments made in naira. The arrangement was designed to reduce the refinery’s dependence on foreign exchange and lower operating costs.
Despite the agreement, challenges have continued to affect crude supply. Limited availability of Nigerian crude and operational issues at export terminals have made it difficult for the refinery to receive enough cargoes to meet its production needs.
Dangote Refinery Chief Executive Officer, David Bird, had previously explained that these supply shortages encouraged the company to search for crude oil from international markets.
The refinery is also preparing for significant expansion in the coming years. Dangote plans to increase its refining capacity from 700,000 barrels per day to 1.4 million barrels per day by the end of 2028. Once completed, the facility will be capable of processing nearly 80 percent of Nigeria’s current daily crude oil production.
As part of this expansion, the refinery intends to increase the amount of heavier crude oil used in its operations. Bird earlier stated that the company plans to blend different crude grades, including supplies from the Middle East, to improve efficiency and optimize production.
He noted that when the refinery reaches its future processing capacity, as much as 30 percent of the crude used in each processing unit could come from Middle Eastern suppliers.
Industry analysts say the refinery’s decision to diversify its crude sources reflects its ambition to operate as a fully commercial refinery that can purchase crude from different parts of the world based on market conditions.
According to S&P Global Commodity Insights, Nigerian crude accounted for about 70 percent of the refinery’s crude imports in 2025, while the United States supplied around 24 percent. The latest purchases from the UAE are expected to further diversify the refinery’s supply chain and strengthen its long-term operations.
