In a bold move to strengthen Nigeria’s energy independence, Dangote Refinery has announced plans to completely halt crude oil imports from the United States and other countries by December 2025, transitioning to a 100% reliance on Nigerian crude.
According to Bloomberg, this was disclosed by Devakumar Edwin, Vice President of Dangote Industries, during an exclusive interview.
Over Half of Crude Now Sourced Locally
In June 2025, the Dangote Refinery sourced 53% of its crude oil from local Nigerian producers, while the remaining 47% was imported, mainly from the US, Bloomberg reports. Edwin stated that this marks the beginning of a significant transition towards full domestic sourcing.
“We expect some of the long-term contracts will expire. Personally, and as a company, we expect that before the end of the year, we can transition 100% to local crude,” Edwin affirmed.
Increase in Nigerian Oil Production Expected
To achieve this goal, Edwin emphasized the need for a major boost in Nigeria’s crude oil production over the next few months. This would allow local oil producers to meet the supply demands of Africa’s largest refinery without relying on imports.
Since it began operations in 2023, the Dangote Refinery has imported crude from the US, Brazil, Angola, Ghana, and Equatorial Guinea. However, with rising domestic capacity and favorable policy directions, the company is confident of cutting off foreign crude dependency by the end of 2025.
July and August Crude Allocations from NNPC
As part of the transition, Dangote Refinery is set to receive five cargoes of crude oil from the Nigerian National Petroleum Company (NNPC) in July, with another five scheduled for August, according to a leaked list of cargo allocations. These allocations reflect growing collaboration between the refinery and Nigeria’s state oil firm.
Dangote Reduces PMS Ex-Depot Price to ₦820
In a related development, Dangote Refinery on Tuesday announced a reduction in the ex-depot price of Premium Motor Spirit (PMS), bringing it down to ₦820 per litre. This move is expected to positively impact downstream marketers and consumers amid ongoing inflationary pressure in the country.
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What This Means for Nigeria
- Energy independence: Transitioning to 100% local crude will reduce Nigeria’s dependence on foreign oil, saving foreign exchange and boosting national pride.
- Support for local producers: Nigerian oil companies stand to benefit from consistent, large-scale domestic demand.
- Lower fuel costs: Reduced import expenses could eventually contribute to more stable and affordable fuel prices.
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