Dangote Refinery Increases Nigerian Crude Intake as Iran War Shifts Oil Markets

Dangote Petroleum Refinery is increasing purchases of Nigerian crude as the Iran war and uncertainty around Middle East oil flows reshape demand for West African barrels.

Billionaires Africa reported that Bloomberg cited ship-tracking data and commodity market analysts showing a shift in crude flows. The report said Dangote’s rising domestic demand has helped lift premiums for Nigerian grades compared with Angolan grades.

The 650,000 barrels-per-day refinery in Lekki has become a major outlet for Nigerian crude at a time when some overseas buyers are reassessing supply routes. The report said Asian buyers have reduced some Atlantic Basin purchases while waiting for more clarity on Middle East supply.

That change has given Nigeria a stronger local buyer for crude that might otherwise compete harder in export markets. It also supports one of the refinery’s original arguments: that processing more crude at home can reduce Nigeria’s exposure to shifts in global demand for raw crude and refined products.

The article also cited Reuters commentary from Vortexa market analyst Mick Strautmann, who said there was “a clear shift toward regional barrels” as Dangote increased its share of Africa’s seaborne fuel imports.

Dangote Industries Vice President Devakumar Edwin and Refinery CEO David Bird were also cited in relation to the refinery’s expansion and rising output. The report said a new phase of construction could lift the complex’s total capacity to 1.4 million barrels per day by the end of 2028.

Sources: Billionaires Africa; Bloomberg; Reuters