Local refineries import 2m barrels Libyan crude amid domestic shortage

Nigeria has imported around two million barrels of crude oil from Libya, marking the first recorded instance of such a transaction. The primary recipient of this crude is the Dangote Petroleum Refinery, a major player in Nigeria's refining sector.

This significant import comes at a time when Nigeria is exporting a substantial volume of its domestically produced crude oil. This high export rate has created a feedstock shortage for local refineries, compelling them to seek supplies from international markets, including Libya.

Libya Review, a Libyan media outlet, reported that this milestone shipment highlights the growing importance of Libyan crude supplies in regional energy markets, especially amidst global trade disruptions. Data indicates Nigeria imported about 64,500 barrels per day of Libyan crude in May 2026.

While reports in 2024 suggested the Dangote refinery was in talks with Libya for crude oil purchases, the Libyan National Oil Corporation had previously denied any negotiations. However, the recent supply indicates an agreement has been reached.

The Dangote refinery is expanding its capacity, aiming for 700,000 barrels per day and a future target of 1.4 million barrels per day by 2028. To meet these demands, the refinery has been actively sourcing crude from various locations. In 2026 alone, it has imported cargoes of Angolan Cabinda and Saxi Batuque crudes, Ghanaian Jubilee crude, and now, for the first time, Libyan and Guyanese supplies. These are primarily light sweet or medium sweet crude varieties.

Local refiners in Nigeria have consistently voiced concerns about insufficient domestic crude supply due to high export volumes. Nigeria exported an estimated 148.9 million barrels of crude oil, valued at approximately N20.22 trillion, in the first five months of 2026, underscoring the scale of the country's oil exports despite domestic supply challenges.