Dangote Refinery Sources Nearly 80% of Feedstock Locally Between May and June

The Dangote Petroleum Refinery has significantly boosted its domestic operations, securing approximately 78% of its crude oil requirements from Nigerian producers during May and June 2026.

Data released by the refinery indicates that the facility processed 40.40 million barrels of crude over the two-month period. Of this total, 31.43 million barrels were supplied by domestic producers, while the remaining 8.97 million barrels, or 22%, were imported from international markets, including Angola, Libya, Guyana, and Ghana. The refinery clarified that its procurement strategy relies on long-term contracts linked to monthly average pricing rather than daily spot market rates.

Nigerian crude grades remain the refinery’s primary source, with Bonny Light, Qua Iboe, Amenam, and Forcados leading the supply. Together, these four grades accounted for more than 18.5 million barrels, representing nearly half of the total intake. While the refinery continues to utilize international blends to supplement its needs, Libya emerged as the largest foreign supplier during this period.

There was a notable decrease in crude costs between May and June. In May, the total value of crude deliveries was approximately $2.68 billion, with some individual cargoes priced as high as $134 per barrel. By June, following a global retreat in oil prices, total monthly expenditure fell to about $1.80 billion, with most cargoes trading between $90 and $97 per barrel.

Industry experts suggest that the combination of increased domestic supply and lower global crude prices could bolster the refinery’s efficiency and support future reductions in fuel costs. By reducing the reliance on expensive imported feedstock and minimizing logistics costs, the refinery is better positioned to lower ex-depot prices, which may provide relief to the downstream sector and further solidify Nigeria’s potential as a regional refining hub.