Business tycoon, Aliko Dangote has addressed rising concerns over why his $20 billion Lagos-based refinery is importing 10 million barrels of crude oil monthly from the United States and other countries.
He explained that the decision is a matter of economic survival and strategic necessity.
According to Dangote, local crude oil producers, especially international oil companies (IOCs), charge between $2 to $6 above market prices, forcing the refinery to look elsewhere.
He noted that U.S. West Texas Intermediate (WTI) is not only cheaper but also more reliably available than Nigerian grades like Bonny Light.
Between February and May 2025, Bonny Light traded at around $83 per barrel, while WTI averaged $79 translating to potential savings of over $100 million annually.
Though critics argue importing crude undermines Nigeria’s self-sufficiency goals, Dangote insists the pricing dynamics and unreliable supply of Nigerian crude justify his approach.
S&P Global data confirms that about 30% of the refinery’s feedstock since launch comes from U.S. suppliers.
Nigeria’s own production has dropped from 1.43 million barrels per day in January to just 1.23 million by March, making local supply unpredictable.
Dangote reiterated his commitment to source over 80% of crude locally by late 2024 but warned that this depends on government enforcement of the Domestic Crude Supply Obligation (DCSO), which local producers often ignore.
Until Nigeria fixes its production and pricing system, Dangote says importing will remain a strategic, if regrettable, choice.
