How Dangote Refinery Captured 13% of Nigeria’s Crude Market in 2024

In 2024, the Dangote Refinery achieved a major milestone by retaining 13% of Nigeria’s crude oil exports for domestic supply. This significant feat not only bolstered Nigeria’s energy independence but also reshaped global oil trade dynamics.

Previously, Nigeria’s domestic share of crude oil exports was just 2% in 2023. The Dangote Refinery’s operations marked a dramatic shift, showcasing its capacity to transform the nation’s oil industry. Despite being a major crude exporter, Nigeria’s reliance on imported refined products had been a longstanding issue. 

The refinery’s success has been hailed as a critical step toward reducing that dependence.

A boost for domestic supply

The Dangote Refinery, with a massive capacity of 600,000 barrels per day (bpd), played a pivotal role in driving the increased domestic use of Nigerian crude. Its operations ensured a larger portion of Nigeria’s oil remained within the country, reducing the need for costly imports of refined petroleum products.

However, the journey was not without its challenges. The refinery faced difficulties securing sufficient crude oil from the Nigerian National Petroleum Company (NNPC), which led to it importing crude oil from the United States. 

This move, while unusual for an oil-exporting nation, highlights the complexities of balancing local production with supply chain demands.

Changing global oil dynamics

The refinery’s rise comes at a time when global crude flows are undergoing a massive transformation. Sanctions on Russian oil, conflicts in the Middle East, and shifting trade routes have all contributed to a more unpredictable oil market.

In 2024, global crude exports dropped by 2%—the first decline since the COVID-19 pandemic. As traditional suppliers like Russia and Iran faced restrictions, countries in Europe and South America sought alternatives, turning to the U.S. and other emerging producers like Guyana.

For Nigeria, the Dangote Refinery’s contributions not only reduced Europe’s reliance on Nigerian crude but also allowed Nigeria to play a strategic role in reshaping oil supply chains. The refinery exported refined products such as diesel and jet fuel to Europe and Premium Motor Spirit (PMS) to African countries like Cameroon and Ghana, further boosting its impact on regional markets.

Challenges and opportunities ahead

Despite its achievements, the Dangote Refinery is still ramping up to full operational capacity. Experts believe its potential to further cut Nigeria’s dependence on imported fuels and boost domestic economic growth is immense.

Looking ahead, the global oil market remains uncertain. With potential shifts in U.S. foreign policy, rising energy demands in India, and the growing adoption of renewable energy sources, the future of crude oil trade could look very different.

What’s clear, however, is that the Dangote Refinery has already carved a pivotal role for itself in Nigeria’s energy narrative. By retaining 13% of the nation’s crude oil exports in 2024, it has demonstrated the power of local investment and innovation to drive economic transformation.

What you should know

As the largest single-train refinery in Africa and Europe, the Dangote Refinery stands as a symbol of what is possible when ambition meets execution. While challenges remain, its impact on Nigeria’s oil industry is undeniable, and its contributions to reshaping global trade routes are only just beginning.

For Nigeria, this refinery is more than a facility—it is a beacon of hope for a future where the country can maximize the value of its resources and lead the way in the global energy transition.