Nigeria has seen a sharp increase in its crude oil imports, with a 26.5 per cent rise in the first half of 2025 (H1’25), reaching 5,665,602 metric tons. This significant surge, up from 4,478,413 metric tons in H1’24, is primarily attributed to the operational demands of the 650,000 barrels per day (bpd) Dangote Petroleum Refinery.
The refinery, which began operations in May 2023 and started refining diesel and aviation fuel in January 2024, has been importing crude from a variety of nations, including the United States, Brazil, Angola, and Equatorial Guinea. This development has transformed Nigeria’s import landscape, with a mixed but ultimately upward trend in the first two quarters of the year.
While crude imports in Q1’25 were down by 30 per cent compared to Q1’24, the second quarter saw a dramatic 126 per cent increase, with imports soaring to 3,265,099 metric tons. This surge highlights the refinery’s growing appetite for feedstock as it ramps up its refining and export activities.
Why the Imports? Experts Weigh In
According to experts, the Dangote Refinery’s reliance on foreign crude is a consequence of Nigeria’s constrained domestic supply. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Sector Enterprise (CPPE), explained that a significant portion of Nigeria’s crude output is already committed to forward sales agreements with international buyers.
“Over time, a significant portion of our crude has been sold through forward contracts, with payments collected in advance,” Dr. Yusuf said. He added that the structure of joint ventures with International Oil Companies (IOCs) also limits the unilateral allocation of crude for domestic use.
Mr. Clement Isong, CEO of the Major Energy Marketers Association of Nigeria (MEMAN), echoed this sentiment, noting that importing crude is not unusual for major oil-producing nations. He confirmed that while the Dangote Refinery sources some of its crude locally, it must import additional volumes to meet its full demand.
Economic Impact and Future Outlook
Despite the paradox of an oil-rich nation importing crude, the Dangote Refinery is having a significant positive impact on the country’s economy. Maritime analyst Oluwabunmi Ogunjimi noted that the refinery has become a major revenue source for the Nigerian Ports Authority (NPA) through the payment of ship dues and other taxes. He highlighted that the massive Very Large Crude Carrier (VLCC) vessels calling at Nigerian ports to deliver crude and load refined products are generating unprecedented commercial activity in the shipping sector.
Looking ahead, the government has announced plans to boost domestic oil output. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has launched “Project 1 Million Barrels,” a strategic initiative aimed at increasing national daily production to 2.5 million bpd in the short term. The government also confirmed that over 67 million barrels were delivered to local refiners between January and August 2025, showing a growing synergy between local producers and refiners.
Source: Vanguard
