Dangote Refinery has resumed its acquisition of crude oil from the United States, marking a significant shift in its strategy to boost refining capacity and overall production.

In a report by Bloomberg on Wednesday, it was revealed that a cargo of two million barrels of WTI Midland crude, sourced from Chevron Corp., is expected to be delivered to Dangote Refinery next month.

This marks the first purchase of US oil since the refinery paused foreign crude imports.

The move indicates a shift in the refinery’s supply strategy, which had previously been focused on Nigerian crude, particularly as it seeks to ramp up operations.

This new purchase raises questions about the status of the Nigerian government’s Naira-for-crude deal, which was hinted at in early October 2024.

The agreement, aimed at trading crude oil in exchange for the Nigerian naira, has faced uncertainty.

Some experts suggest that the deal might be stalling, or that the refinery might not be receiving the expected crude oil supply from the Nigerian National Petroleum Company Limited (NNPC).

Dangote Refinery’s recent decision to purchase crude from Chevron, a major US oil company, comes at a time when the refinery is actively scaling up production capabilities.

The refinery had been under intense scrutiny as it works toward becoming a key player in Nigeria’s oil industry.

While it had been procuring Nigerian oil, this new shipment of WTI Midland crude from the US underscores its reliance on diverse global suppliers to meet its production goals.

In fact, Chevron has reportedly booked the supertanker Azure Nova to transport the crude from the US Gulf, with the shipment scheduled to arrive at Dangote Refinery around December 5.

While the Nigerian government’s Naira-for-crude initiative remains in question, economist Kelvin Emmanuel recently stated that Dangote Refinery still purchases crude from the Nigerian government in dollars, suggesting that the refinery’s operations may not yet fully align with the federal government’s policy on local crude sales.

Dangote Petroleum Refinery begins exportation of products to neighbouring West African countries. A report was made that the Dangote refinery just shipped gasoline to the coast of Togo, West Africa. Although the shipment of the gasoline is going to the coast of Togo it can also be taken somewhere else in West Africa.

Chairman of NPA, Ghana speaks at the OTL Africa Downstream Oil Conference in Lagos states that importing from Nigeria reduces prices and freight costs for them rather than importing from Europe.

“If the refinery reaches 650,000bpd a day capacity, all that volume cannot be consumed by Nigeria alone, so instead of us importing as we do right now from Rotterdam, it will be much easier for us to import from Nigeria and I believe that will bring down our prices,”

FBN Holdings shareholders approve the plan of raising #350billion in additional capital and also changing its brand name. These discussions happened in the Annual General Meeting (AGM) and were submitted to the Nigerian Exchange Limited.

The Shareholders also approved of a dividend payment of 40 kobo per 50 kobo ordinary share, which will result to #14.36 billion for 2023 financial year.

This capital raise will include issuing shares, private placements or right issues concluded and approved by the board of directors. It will align with the initiate to raise #150 billion issues by the Central Bank of Nigeria.