Nigerian crude oil exports have recently gained momentum in the Indian market, even as the $20 billion Dangote Petroleum Refinery in Lagos increasingly sources crude oil from the United States instead of local suppliers.
According to Reuters, India’s largest refiners — Indian Oil Corporation and BPCL — purchased millions of barrels of Nigerian crude grades such as Agbami, Bonny Light, and Escravos for September delivery. These shipments come as India diversifies its imports away from Russia, with Nigeria becoming a key supplier.
Meanwhile, data from Kpler reveals that in July 2025, US barrels accounted for 60% (370,000 bpd) of Dangote’s 590,000 bpd feedstock, while Nigerian crude accounted for just 40%. This marks the first time US imports have overtaken Nigerian supplies at the refinery.
Industry analysts say this shift is driven by competitive US pricing, domestic supply bottlenecks, and logistical challenges in Nigerian crude oil delivery. Although Nigeria’s Domestic Crude Supply Obligation is meant to prioritize local refineries, operators like Dangote have raised concerns about insufficient supply from the Nigerian National Petroleum Company Limited (NNPCL).
For Nigeria, the scenario presents a paradox: while Nigerian crude oil exports thrive abroad, local processors still face shortages. This could impact Nigeria’s refining capacity and fuel self-sufficiency goals in the long term.
For more insights on the oil and gas sector, visit our Energy & Oil Market news section or explore related articles on Dangote Refinery operations.
