Nigeria’s $20 billion Dangote refinery is set to transition entirely to locally sourced crude oil by the end of this year, marking a critical shift in the country’s energy landscape, according to Bloomberg.

The refinery, which began operations last year with a mix of imported feedstock, has already sourced over half of its supply from Nigerian producers in recent months. Company executives say full reliance on domestic crude will begin once existing foreign supply contracts expire in the coming months.

The multi-billion-dollar Ibeju‑Lekki facility, boosting a capacity of 650,000 barrels per day, was launched in May 2023 with the goal of ending Nigeria’s costly practice of exporting crude only to import fuel at inflated prices. Its scale surpasses that of any single European refinery, and its staged commissioning has already positioned Nigeria as a net exporter of refined petroleum products

The move creates new market opportunities for local upstream producers, who have long faced limited domestic offtake options. It also brings greater certainty for oil producers contending with infrastructure constraints, export delays, and the absence of local refining capacity. Image