Nigeria imported about 61.7 million barrels of crude oil from the United States between January 2024 and January 2026, highlighting a growing dependence on foreign feedstock despite the country’s status as a major oil producer. Data from the US Energy Information Administration shows a sharp rise in shipments, reversing nearly a decade of minimal crude trade between both countries, with the shift coinciding with the start of operations at the Dangote Refinery.
The Dangote Refinery, Africa’s largest oil processing facility, has become a key buyer of US crude to offset domestic supply shortages, even as Nigeria exported over 300 million barrels in the first 10 months of 2025 and 55.39 million barrels in early 2026. Imports rose significantly in 2025, peaking at 305,000 barrels per day in June, before slowing toward year-end. Analysts say the trend reflects structural supply gaps in Nigeria’s upstream sector, where production has struggled to meet domestic refining demand due to aging infrastructure, theft, and underinvestment.
From an economic perspective, importing crude while simultaneously exporting the same commodity represents an inefficient use of resources and puts pressure on foreign exchange reserves. The Dangote Refinery, with a capacity of 650,000 barrels per day, was designed to eliminate Nigeria’s reliance on imported petroleum products, but it now finds itself importing crude feedstock due to inadequate local supply. This paradox underscores the disconnect between Nigeria’s upstream and downstream oil sectors, a legacy of decades of underinvestment in production capacity and the neglect of local refining.
The situation also highlights the complexity of Nigeria’s energy transition. While the refinery offers the potential to reduce fuel imports and conserve foreign exchange, its reliance on foreign crude exposes it to global price volatility and shipping costs. Addressing the upstream gaps through improved security, infrastructure investment, and enhanced recovery techniques will be essential to realising the full benefits of domestic refining. Until then, Nigeria’s position as a crude exporter that also imports crude for its own refineries is likely to persist, a costly inefficiency that undermines the country’s balance of trade.
