India Buys More Nigerian Crude While Dangote Refinery Leans on US Supply

India’s state-owned refiners are increasing purchases of Nigerian crude while Nigeria’s Dangote Petroleum Refinery is sourcing most of its feedstock from the United States, highlighting shifting trade flows in the global oil market.

Industry sources said Indian Oil Corporation recently acquired one million barrels of Nigeria’s Agbami crude for September delivery through trader Trafigura, part of a wider move by Indian refiners to diversify away from Russian barrels. Alongside Bharat Petroleum, Indian Oil has secured over two million barrels of Nigerian grades for September and October as the country adjusts procurement strategies under US pressure to reduce imports from Russia.

At the same time, the \$20bn Dangote Petroleum Refinery in Lagos is importing more crude from the US than from domestic producers for the first time. Data from Kpler shows that in July, American barrels accounted for about 60 per cent of its record 590,000 barrels per day crude intake, with Nigerian grades making up the remaining 40 per cent. The refinery, which is operating at 85 per cent of its capacity and aims to expand to 700,000 barrels per day, has faced persistent challenges in securing enough local crude under Nigeria’s Domestic Crude Supply Obligations.

Kpler attributed the shift to competitive US pricing, particularly for West Texas Intermediate, which has struggled to find buyers in Asia amid rising OPEC+ supply. It also noted ongoing operational constraints at the refinery, including issues with its 204,000 barrels per day RFCC unit, and said full-capacity operations are unlikely before late 2026.

While Dangote’s production is primarily sold domestically, some volumes have been exported to Oman, Ivory Coast, and Europe. In July, the refinery’s crude inventories rose to 6.73 million barrels, suggesting part of the increased imports are being stored.

Nigeria’s upstream sector is meanwhile seeing a growing role for indigenous operators as international oil majors scale back. Domestic crude and condensate production reached 1.75 million barrels per day in July, the highest three-month average in more than five years, helped by improved onshore output and reduced pipeline disruptions. Smaller producers are also expanding export capacity, with new terminals and revived fields expected to boost supply in the coming year.

Dangote Group President Aliko Dangote recently said the refinery has made Nigeria a net exporter of refined products, with around one million tonnes of petrol shipped in just 50 days between June and July. However, analysts remain cautious about its operational outlook, citing maintenance demands and feedstock supply constraints.