Nigeria Refining Its Own Crude Oil, but Challenges Persist

Nigeria's energy story is changing as the country moves towards refining its own crude oil. The Dangote refinery has reached its capacity of 650,000 barrels per day and is supplying a significant share of the domestic market. It has also begun exporting refined products to other African countries.

In April, the refinery exported an estimated 1.66 billion litres of petrol, diesel, and aviation fuel. This marks a significant shift in Nigeria's energy landscape, as the country is no longer solely dependent on imported refined products.

However, there are still challenges to be addressed. The Nigerian Upstream Petroleum Regulatory Commission reported that producers offered 68.7 million barrels for domestic refining in the first quarter of 2026, but only 28.5 million barrels were actually supplied. This shortfall is attributed to pricing differences between producers and domestic refiners.

Nigeria has the potential to become a major energy supplier to West Africa, with its population, crude resources, and refining capacity. However, the country must address its infrastructure and financing needs to achieve this goal. The success of Nigeria's new regional ambition cannot come at the expense of leaving unresolved problems of domestic supply, pricing, and affordability.