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Dangote Refinery Boosted Crude Supply to Ease Nigeria's Fuel Crisis

Bloomberg Markets •
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Nigeria will increase crude cargoes allocated to the Dangote Refinery, Africa's largest, to bolster domestic refined product supply. This move responds to global energy route disruptions caused by the Iran war, according to state oil officials. The 650,000 barrels-per-day refinery, located near Lagos, supplied 64% of Nigeria's gasoline in February.

At full capacity, it can meet all domestic needs and export a quarter of its output. The refinery, owned by Africa's richest person, has already reduced Nigeria's reliance on imported fuels and shielded it from supply shocks. 53% of March's 16.04 million barrels of crude deliveries came from Nigeria, the lowest since September, highlighting supply challenges. The refinery requires about 19.77 million barrels monthly.

This boost deepens its 'supply chain resiliency,' crucial amid global refining vulnerabilities due to the Persian Gulf conflict.