Dangote Refinery Seeks 150,000 BPD of Nigerian Crude to Bolster Output Amid Price Pressure

Dangote Industries, operator of Africa’s largest oil refinery in Lagos, is actively pursuing an additional 150,000 barrels per day of Nigerian crude through supply agreements with state-owned and private producers. This expansion in procurement comes as the refinery faces rising input costs and increasing pressure to maintain competitive fuel output amid regional price volatility. The initiative reflects a strategic pivot to secure consistent, low-cost feedstock. Currently operating at near-full capacity, the Lagos facility processes approximately 650,000 barrels per day of refined products, including gasoline, diesel, and jet fuel. By securing more domestic crude, Dangote aims to reduce reliance on imported feedstock, which has been subject to higher freight and insurance premiums due to geopolitical instability in key transit zones. The move is expected to influence regional refining margins, with benchmark Nigerian Bonny Light crude trading at a premium of $2.50 per barrel over Brent Crude in early March 2026. Increased domestic demand from the Dangote refinery could tighten supply availability for export markets, potentially affecting global crude flows, particularly for European and Asian buyers reliant on West African barrels. Crude futures (CL=F) saw a 0.8% uptick on the news, with analysts noting that sustained demand from Nigeria’s premier refinery could support price stability. The Nigerian National Petroleum Company (NNPC) is in discussions to prioritize feedstock allocation, while shares of Dangote Industries (DANGOTE.NS) rose 1.9% amid renewed investor confidence in the company’s refining dominance.