Nigeria’s Dangote Oil Refinery is rapidly reshaping global crude trade flows, significantly increasing its reliance on U.S. West Texas Intermediate (WTI) crude amid shifting market dynamics. With a massive installed capacity of 650,000 barrels per day, the $19 billion Lagos-based facility is now sourcing a third of its crude oil feedstock from the U.S., particularly the WTI Midland grade — a figure that has nearly doubled in 2024.
This growing preference, confirmed by Bloomberg ship-tracking data, signals a strategic pivot that strengthens economic ties between Africa’s largest economy and the United States. The shift comes as the refinery, owned by Africa’s richest man, Aliko Dangote, accelerates production — having begun output of diesel and naphtha in January and preparing to commence gasoline production by September.
According to analysts, the WTI Midland’s high gasoline yield, coupled with reduced Asian demand due to U.S.–China trade tensions, has made it an attractive option for the refinery. Nigerian crude supply constraints have further incentivized diversification of sources. By June, WTI is expected to constitute a larger share of the refinery’s total crude imports, with projections suggesting Dangote’s summer WTI intake could reach 14 million barrels, primarily supplied by Vitol Group.
The choice of WTI also reflects a global realignment in crude benchmarks, as the grade increasingly outpaces traditional North Sea blends, whose declining production has reduced their influence on global pricing.
In a symbolic gesture recognizing political support, Dangote has named the refinery’s main access road after President Bola Ahmed Tinubu, citing his administration’s push for private-led infrastructure development. The naming was announced during the commissioning of the Deep-Sea Port Access Road, a major logistics artery connecting the Dangote Fertilizer Plant to Eleko Junction and serving as a strategic gateway to Chad, Cameroon, and key expressways like Sagamu–Benin.
Meanwhile, global oil markets are showing signs of recovery. WTI crude prices closed the week $1 higher at $64 per barrel, marking a 2% gain and the first weekly increase since mid-May. The rebound follows a strong U.S. jobs report, progress in U.S.–China trade discussions, and less-than-expected output increases by OPEC nations under quota caps.
While Iraq and the UAE held production steady or made modest increases, Libya surged to a 13-year high of 1.3 million barrels per day, pushing OPEC’s total May output to 27.54 million barrels per day, a 200,000 bpd rise from April.
Analysts say these developments — particularly the expanding role of refiners like Dangote in reshaping global crude sourcing — are likely to influence oil pricing and trade flows in the second half of the year. The refinery’s evolving crude mix underscores its ambitions not only to meet Nigeria’s domestic fuel needs but also to emerge as a regional export hub, driving broader energy and economic transformation across West Africa.
