The Dangote Petroleum Refinery has purchased two crude oil cargoes from the United Arab Emirates, marking its first-ever procurement from a Middle Eastern supplier as it expands feedstock sources to address persistent domestic supply shortfalls .
According to a report by S&P Global Commodity Insights, the 700,000-barrels-per-day refinery's purchase signals a significant strategic shift from its traditional reliance on Nigerian, other African, and United States crude grades . The transaction was facilitated by the resumption of Middle Eastern oil exports following an interim peace agreement between the United States and Iran, which restored confidence in shipping through the strategic Strait of Hormuz .
Naira-for-Crude Deal Faces Disruptions
Although the refinery was designed primarily to process Nigeria's light sweet crude, operations have faced persistent feedstock constraints. An existing agreement with the Nigerian National Petroleum Company Limited (NNPCL) guarantees the supply of between 13 and 15 cargoes of Nigerian crude monthly in naira, helping reduce the refinery's foreign exchange exposure .
However, the arrangement has been undermined by inadequate crude availability and operational challenges at export terminals . Dangote Refinery Chief Executive Officer, David Bird, had earlier disclosed that these constraints had compelled the company to seek additional crude sources outside Nigeria .
Strategic Shift Toward Heavier Crude Grades
The UAE procurement is part of a broader strategy as the refinery prepares for substantial capacity expansion. Bird indicated the company plans to increase the proportion of heavier crude grades in its feedstock mix to improve refining economics .
"We definitely want to heavy up the barrel," Bird said in April, adding that the refinery would engage in crude blending and could process up to 30 per cent Middle Eastern crude on each processing train at full expansion .
Expansion Plans and Diversification Drive
Dangote plans to double the refinery's processing capacity to 1.4 million barrels per day by the end of 2028, a level that would enable it to process about 80 per cent of Nigeria's current daily crude production . According to S&P Global data, about 70 per cent of the refinery's crude imports in 2025 came from Nigeria, while 24 per cent originated from the United States .
Beyond Nigerian and U.S. grades, the refinery has also imported crude from Angola, Libya, Ghana, and Guyana in 2026, reflecting its growing diversification strategy . The UAE purchase marks the latest addition to the refinery's expanding global supplier network as Africa's largest refinery positions itself as a fully merchant facility capable of processing a wide variety of global crude types .
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